A large distribution center must develop a staffing plan that minimizes the total cost using part-time workers. Use chase and level strategy and compute the total cost.
Inputs Period 1 2 3 4 5 6
Forecasted demand (Number of part-time workers 6 12 18 15 13 14
Each period is 20 hours.
From the beginning manager has 10 part-time workers.
The distribution center can hire new part-time workers in any period, but no more than 10.
Overtime can not exceed 20 percent of the regular time (that is 4 hours) in any period.
The following costs can be assigned:
Regular time: 2000 dollars per period (period = 20 hour).
Overtime: 150 percent of the regular time.
Hires: 1000 dollar per person.
Layoffs: 500 dollars per person.
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use chase level to compute total cost
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