The Barberton Municipal division of Road Maintenance is charged with road repair
ID: 381304 • Letter: T
Question
The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 7,000, 13,000, 20,000, and 9,000, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $17 for each Overtime is limited to 20 percent of the regular-time capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,000 and the cost of laying off a worker is $1,900. Subcontracting is not permitted. (Hint: When calculating the number of workers, make sure to round up to the next whole number before proceeding with any further a. Find a level workforce plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of the plan? $ response as an integer) (Enter yourExplanation / Answer
Level workforce plan with Overtime and Undertime.
For achieving minimum undertime, maximum overtime use should happen in the quarter with peak demand.
Let w = Total number of workers required to take care of peak demand in a quarter.
Peak demand in the 4 quarters = 20,000.
Overtime limit = 20% of regular-time capacity.
Hours available per worker per quarter = 500.
1.2 x w = 20,000 / 500 = 40
w = 40 / 1.2 = 33.33 34.
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Labor hours required
7000
13000
20000
9000
Hours available per worker
500
500
500
500
Workforce level
34
34
34
34
Total hours available (= 34*500)
17000
17000
17000
17000
Undertime (in hours)
10000
4000
0
8000
Overtime (in hours)
0
0
3000
0
Regular time (in hours)
7000
13000
17000
9000
Hire workers
23
0
0
0
Layoff workers
0
0
0
0
Regular production cost (in $) (@ $ 6,000 for 500 hours per worker)
84000
156000
204000
108000
552000
Undertime cost (in $) (@ $ 12 per hour)
120000
48000
0
96000
264000
Overtime cost (in $) (@ $ 17 per hour)
0
0
51000
0
51000
Cost of hiring ($ 3,000 per worker)
69000
0
0
0
69000
Cost of layoff ($ 1,900 per worker)
0
0
0
0
0
Total Cost (in $)
936000
a. Total cost of the plan = $ 936,000.
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Labor hours required
7000
13000
20000
9000
Hours available per worker
500
500
500
500
Workforce level
34
34
34
34
Total hours available (= 34*500)
17000
17000
17000
17000
Undertime (in hours)
10000
4000
0
8000
Overtime (in hours)
0
0
3000
0
Regular time (in hours)
7000
13000
17000
9000
Hire workers
23
0
0
0
Layoff workers
0
0
0
0
Regular production cost (in $) (@ $ 6,000 for 500 hours per worker)
84000
156000
204000
108000
552000
Undertime cost (in $) (@ $ 12 per hour)
120000
48000
0
96000
264000
Overtime cost (in $) (@ $ 17 per hour)
0
0
51000
0
51000
Cost of hiring ($ 3,000 per worker)
69000
0
0
0
69000
Cost of layoff ($ 1,900 per worker)
0
0
0
0
0
Total Cost (in $)
936000
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