Reference no: EM13118535

You have the ramp-servicing contract for a midsize executive airport. For ramp service workers you use predominantly part time workers, all of whom have sufficient skills to do all the work required. All the comments and data following pertain to workers, exclusive of management and supervisory personnel.

You have two full time employees who work 8 hours per day. The working hours for the full-time employees is fixed, and is as follows:
• One worker starts work at 6 am, works four hours, takes an hour off, and returns to work for four hours.
• The other full-time worker starts work at 9 am, works 4 hours, takes an hour off, and returns to work for four hours.

The rest of the workers currently work four-hour shifts.
Part time employees are paid at $12.40/hour. The employee multiple (the amount it costs the company to have the employee - such things as social security and workman's compensation payments) for these workers is 1.25. (i.e., It costs you salary times multiple for each employee)
Demand:

Requirements for workers, by hour, for the hours of operation, are as follows:
07-08 9
08-09 9
09-10 9
10-11 3
11-12 3
12-13 3
13-14 6
14-15 12
15-16 12
16-17 7
17-18 7

a. Develop a minimum cost schedule for the part-time employees. (How many start at each hour?)
b. What is the total payroll for the part-time employees?
c. How many part-time shifts are needed?
d. Does it appear advisable to utilize any 3-hour shifts? Assume the ability to assign part-time workers to three hour or four hour shifts.
a. Develop a new minimum cost schedule for part-time workers.
b. What is the cost savings, if any, for this revised schedule compared with one using only 4-hour shifts?