The document provides workforce requirements and costs for Bob Carlton's golf camp over 8 quarters. It estimates demand for services in hours and outlines costs for regular time, overtime, hiring/firing employees, and unused time. Three workforce planning strategies are evaluated: 1) A level strategy using overtime and minimum undertime costs $705,200. 2) A chase strategy varying workforce without overtime/undertime costs $771,200. 3) A proposed plan starting with 9 employees and using some overtime costs less at $675,600.
The document provides workforce requirements and costs for Bob Carlton's golf camp over 8 quarters. It estimates demand for services in hours and outlines costs for regular time, overtime, hiring/firing employees, and unused time. Three workforce planning strategies are evaluated: 1) A level strategy using overtime and minimum undertime costs $705,200. 2) A chase strategy varying workforce without overtime/undertime costs $771,200. 3) A proposed plan starting with 9 employees and using some overtime costs less at $675,600.
The document provides workforce requirements and costs for Bob Carlton's golf camp over 8 quarters. It estimates demand for services in hours and outlines costs for regular time, overtime, hiring/firing employees, and unused time. Three workforce planning strategies are evaluated: 1) A level strategy using overtime and minimum undertime costs $705,200. 2) A chase strategy varying workforce without overtime/undertime costs $771,200. 3) A proposed plan starting with 9 employees and using some overtime costs less at $675,600.
The document provides workforce requirements and costs for Bob Carlton's golf camp over 8 quarters. It estimates demand for services in hours and outlines costs for regular time, overtime, hiring/firing employees, and unused time. Three workforce planning strategies are evaluated: 1) A level strategy using overtime and minimum undertime costs $705,200. 2) A chase strategy varying workforce without overtime/undertime costs $771,200. 3) A proposed plan starting with 9 employees and using some overtime costs less at $675,600.
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Bob Carlton’s golf camp estimates the following workforce requirements for its services over the next
two years. Quarter 1 2 3 4 Demand (hours) 4,200 6,400 3,000 4,800 Quarter 5 6 7 8 Demand (hours) 4,400 6,240 3,600 4,800 Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours over time. Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are $4,000 per employee. Currently, eight employees work in this capacity. a. Find a workforce plan using the level strategy that allows for no delay in service. It should rely only on overtime and the minimum amount of undertime necessary. What is the total cost of this plan?
We see that Peak demand is 6,400 hours in quarter 2.
As each employee can work maximum of 480 regular + 120 overtime = 600 hours per quarter, the level workforce which will covers given reqts & also minimizes undertime is 6,400/600 = 10.67 or 11 employees. Regular Employee works for 480 Hrs per Qtr Regular employee Salary $7,200 Addl Overtime per employee (Hrs) 120 Overtime rate for employee per hr $20 Hiring cost of new employee $10,000 Firing cost of employee $4,000 So Hourly rate of Employee = $7200/480 = $15 So we should Hire 3 employess @$10,000 per employee = 3*$10,000 = $30,000 So we have first calculated for 11 employee@480 hrs @$15 per hour. Table is shown below.
Cost Qtr 1 2 3 4 5 6 7 8 Total Hrs Incurred
Forecast demand (hrs) 4200 6400 3000 4800 4400 6240 3600 4800 Workforce level 11 11 11 11 11 11 11 11 Workforce Hrs 5280 5280 5280 5280 5280 5280 5280 5280 42240 $633,600 Undertime Hrs 1080 0 2280 480 880 0 1680 480 6880 Hired 3 3 $30,000 Overtime Hrs 0 1120 0 0 0 960 0 0 2080 $41,600 Laid Off 0 $0 Total Cost $705,200 b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
c. Propose a better plan and calculate its total cost.
We see from above that Level Strategy has a cost of $705,200 while Chase has cost of $771,200. We start with a workforce of 9 & then workout the optimum plan as below for a cost of $675,600. Recall that each employee can work maximum 120 hrs Overtime & that constraint is used.
