OPS MGMT Chapter 14 problem 2 – Bob Carlton’s
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.
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?
Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
Propose a better plan and calculate its total cost.