Reference no: EM131707584

The Cranston Telephone Company employs workers who lay telephone cables and perform various other construction tasks. The company prides itself on good service and strives to complete all service orders within the planning period in which they are received. Each worker puts in 600 hours of regular time per planning period and can work as much as an additional 100 hours overtime. The operations department has estimated the following workforce requirements for such services over the next four planning periods: Planning Period 1 2 3 4 Demand (hours) 21,600 18,000 30,000 13,800 Cranston pays regular-time wages of $6,000 per employee per period for any time worked up to 600 hours(including undertime). The overtime pay rate is $15 per hour over 600 hours. Hiring, training, and outfitting a new employee costs $8,000. Layoff costs are $2,000 per employee. Currently, 40 employees work for Cranston in this capacity. No delays in service, or backorders, are allowed. Develop a level workforce plan that uses only the overtime and undertime alternatives. Maximize the use of overtime during the peak period so as to minimize the workforce level and amount of undertime. Prepare a chase strategy without using overtime. Propose an effective mixed-strategy plan.