How many training classes should the company hold each year

Reference no: EM131925920

Question: Amtrak Bus Lines is proud of its six-week bus driver training program that it conducts for all new Amtrak drivers. As long as the class size remains less than or equal to 35, a six-week training program costs Amtrak $22,000 for instructors and equipment. The Amtrak training program must provide the company with approximately five new drivers per month. After completing the training program, new drivers are paid $1,600 per month but do not work until a full time driver position is available. Amtrak views the $1,600 per month paid to each idle new driver as a holding cost necessary to maintain a supply of newly trained drivers available for immediate service.

(a) What is Amtrak's annual demand for new drivers?

(b) What is Amtrak's ordering cost?

(d) Viewing new drivers as inventory-type units, how large should the training classes be to minimize Amtrak's total annual training and new driver idle-time costs?

(e) How many training classes should the company hold each year?

(f) What is the total annual cost associated with your recommendation?

Reference no: EM131925920

Questions Cloud

How consumers make economic decisions : You have been asked to assist Starbuck's marketing department to better understand how consumers make economic decisions.

Differences between the types of threats and vulnerabilities : The evoluation of the Internet has resulted in an exponential growth in exploits, malware, and other types of attacks for both individuals and for e-Commerce.

What production plan will maximize the total revenue : Past demand indicates that customers purchase at least twice as many cans of Plain Nuts as Premium Nuts. What production plan will maximize the total revenue?

Book income is before any income tax expense : Assume that the corporation is a C corporation and that book income is before any income tax expense.

How many training classes should the company hold each year : Amtrak Bus Lines is proud of its six-week bus driver training program that it conducts for all new Amtrak drivers. As long as the class size remains less.

How consumers make economic decisions : Scenario: You have been asked to assist Starbuck's marketing department to better understand how consumers make economic decisions.

Formulate the given problem and solve it by using excel : Formulate this problem and solve it by using Excel. Your solution should honor all constraints and maximize the profit.

Explain the advantages of server network configuration : Explain why you chose the advantage and challenge that you did, and provide one (1) real-world example of each environment.

What is the expected return of a portfolio of two stocks : What is the expected return of a portfolio of two stocks that has 3,500 shares of stock A, which has a price of 24.2 dollars per share and an expected return.

User Account

All Pages