Retailer experiences a seasonal demand pattern

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A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. Period 1 2 3 4 5 6 Requirement 12 10 12 8 9 8 Costs associated with operations are as follows: Wages = $1,500 per worker per month Hiring cost = $1,500 per worker Layoff cost = $1,500 per worker The current workforce level is 11 workers. Use the spreadsheet approach and the preceding data to answer the following questions. a. What is the total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs, but no overtime? b. What is the total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a level strategy with hiring and layoffs, with overtime of up to 25% of the regular-time capacity, and that overtime wages are 150% of the regular-time rate.

Reference no: EM13964995

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