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Tax Prep Advisers has forcasted the following staffing requirements over the next 12 months:
Month 1 Demand: 5
Month 2 Demand 8
Month 3 Demand 10
Month 4 Demand 13
Month 5 Demand 18
Month 6 Demand 20
Month 7 Demand 20
Month 8 Demand 14
Month 9 Demand 12
Month 10 Demand 8
Month 11 Demand 2
Month 12 Deamand 1
The company currently has 10 associated. No more than 10 new hires can be accomendated in any month. No backorders are allowed, overtime can not exceed 25% of regular time capacity on any month, There is no cost for unused overtime. Regular time wages are $1500 per month and overtime wages are 150% of regtular time. Undertime is paid at the same rate as regular time. The hiring cost id $2500 per person and layoff cosr is $2000 per person,
A) Prepare a staffing plan utilizing a level workforce strategy, The plan may call for a one-time adjustment of the workforce before month 1.
*Please show calculations to determin the workforce
B) Usuing a chase strategy, prepare a plan that is consistent with the constraing on hiring and minimizes the use of overtime.
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