A Large Consulting Firm Is Deciding on If Its Workforce

question 91

Essay

A large consulting firm is deciding on if its workforce should be expanded,maintained,or decreased.Suppose that demand is given in week-long projects,and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences,etc).Currently there are 25 consultants.Ten consultants are trained for LEAN and 15 for Six Sigma,with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma).Assume that all consultants can do the general work.Complete the table (the forecast period is an upcoming month)and prepare a recommendation.

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Definitions:

Resource Prices

The costs associated with acquiring inputs used in the production process, such as labor, materials, and capital.

Industry Expands

The process of growth within a particular sector or industry, marked by increased production, innovation, and possibly the entrance of new firms.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess return over the firm's opportunity costs.

Purely Competitive Firm

A business that operates in a market with many buyers and sellers, where each has a negligible impact on price and product homogeneity prevails.