George, the Room Service Supervisor at the London Inn, just received the forecas
ID: 442782 • Letter: G
Question
George, the Room Service Supervisor at the London Inn, just received the forecast for the weekend orders. Based on this forecast, he has to decide whether the regular hours of his staff will be sufficient, if he needs to prepare them to do some overtime (maximum 20% of the forecasted demand) or, as a last resort, if he needs to hire temporary workers (subcontracting) to be able to deliver all orders.
The associated costs are:
Regular-time cost per order
$5.00
Overtime cost per order
$7.50
Subcontract cost per order
$10.00
Idle time cost per order
$15.00
Forecasted requirements are:
Room Service Orders
Capacity
Period
Forecast
Regular
Overtime
Subcontract
Saturday AM
50
75
25
100
Saturday PM
130
100
30
100
Sunday AM
150
75
25
100
Sunday PM
100
75
25
100
Constraints on overtime are:
Period
Overtime Max (20% of the forecasted demand)
Saturday AM
10
Saturday PM
26
Sunday AM
30
Sunday PM
20
Develop a schedule plan that minimizes costs using the transportation method. Due to the nature of the business, there's no inventory, no stock out and no back order. On the other hand, if the regular staff capacity for the period is larger than the demand, there will be a cost for idle time.
State the corresponding schedule plan and its total costs?
Regular-time cost per order
$5.00
Overtime cost per order
$7.50
Subcontract cost per order
$10.00
Idle time cost per order
$15.00
Explanation / Answer
Schedule plan :
Saturday AM 50 + 75 = 125 * $5 =$625
Saturday PM 130 +100=230 * $5 =$1,150
Sunday PM 150+75=225 * $5=$1,125
Sunday PM 100+75=175 * $5=$875
Overtime
Overtime = 25 + 10 * $7.50=$262.50
Overtime= 30+ 26 * $7.50=$420
Overtime = 25+30 * $7.50=$412.50
Overtime= 25+ 20*$7.50=$337.50
Subcontract:
100 * $10 = $1,000
100 * $10 = $1,000
100 * $10 = $1,000
100 * $10 = $1,000
Period Regular overtime Subtract Availability
Saturday AM $625 $262.50 $1,000 50
Saturday PM $1,150 $420 $1,000 130
Sunday AM $1,125 $412.50 $1,000 150
Sunday PM $875 $337.50 $1,000 100
Total NIL $1,432.50 $4,000
Least is $625
50 = 50
130=150
150 - 50=100
100=100
Saturday PM $420 $1,000 130
Sunday AM $412.50 $1,000 150
Sunday PM $337.50 $1,000 100
Saturday PM $420 $100 13
Sunday AM $412.50 $100 15
Sunday PM $337.50 $100 10
_________________________________
Saturday PM $420 $10 13
Sunday AM $412.50 $10 15
Sunday PM $337.50 $10 0
_________________________________
Saturday PM $84 $10 13
Sunday AM $82.50 $10 3
Sunday PM $67.50 $10 0
Total Cost =$84 + $10 + $82.50 + $10 + $67.50 +$10
=$264
__________________________________________________________________________________
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.