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Table 15.3
A large distribution center uses some part-time employees in its workforce.Each part-time employee works a maximum of 80 hours per month.The workforce requirements (expressed as the number of part-time employees working the maximum regular time of 80 hours per month) are given in the following table for the next six periods. The relevant costs are:
Wages = $350/month/worker
Hiring cost = $100/worker
Layoff cost = $ 50/worker
Overtime cost = 150% of regular-time rate
The current workforce level is 60,and overtime cannot exceed 25% of regular-time capacity.
Use the spreadsheet approach to answer the following questions.
-Use the information in Table 15.3.Use a chase strategy with hiring and layoffs but no overtime.How many workers will be hired in month 3?
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