Table 15.3 A Large Distribution Center Uses Some Part-Time Employees in Its

question 132

Multiple Choice

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 level strategy with overtime and undertime.Minimize undertime by maximizing overtime during the peak period.If the firm does not pay undertime,what is the total cost of the staffing plan including the cost of regular wages,hiring,and layoffs?

• A)less than or equal to $158,000
• B)greater than $158,000 but less than or equal to $160,000
• C)greater than $160,000 but less than or equal to $162,000
• D)greater than $162,000

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Definitions:

Business Proposition Benefit

The advantage or value that a business proposal offers to a potential buyer or investor.

Trial Closings

Sales techniques used to gauge a potential buyer's readiness to complete a purchase by asking hypothetical or suggestive closing questions.

Sales Presentation

A formal talk or demonstration aimed at persuading an audience to purchase a product or service.

FAB

Stands for Features, Advantages, and Benefits; a sales approach focusing on presenting the features of a product, its advantages over competition, and the benefits it provides to the consumer.