Method Essay

Case Problem 4 WORKFORCE SCHEDULINGDavis Instruments has two manufacturing plants located in Atlanta, Georgia. Product remove varies considerably from month to month, causing Davis extreme difficulty in hands scheduling. Recently Davis started hiring fugacious behaveers supplied by men Unlimited, a company that specializes in providing flitting employees for firms in the greater Atlanta area. men Unlimited offered to run pro tempore employees at a lower place(a) three weigh options that differ in foothold of the length of employment and the cost. The three options are summarizedOption Length of avocation Cost1 One month $20002 Two months $48003 Three months $7500The longer embrace periods are more expensive because WorkForce Unlimited experiences greater difficulty finding temporary officiateers who are free to commit to longer work assignments.Over the next cardinal months, Davis projects the side by side(p) needs for additional employees Month January February M arch April May June Employees Needed 10 23 19 26 20 14 Each month, Davis coffin nail absorb as many temporary employees as needed under each of the three options. For instance, if Davis hires five employees in January under Option 2, WorkForce Unlimited leave alone supply Davis with five temporary workers who will work two months January and February.For these workers, Davis will have to pay 5($4800) _ $24,000. Because of some merger negotiations under way, Davis does not want to commit to any contractual obligations for temporary employees that bring out beyond June. Daviss quality control program requires each temporary employee to receive training at the condemnation of hire. The training program is undeniable even if the person worked for Davis Instruments in the past. Davis estimates that the cost of training is $875 each time a temporary employee is hired. Thus, if a temporary employee is hired for one month, Davis will let a training cost of $875, but will incur no add itional training cost if the employee is on a two- or three-month contract.Managerial ReportDevelop a model that can be used to determine the number of temporary employees Davis should hire each month under each contract plan in order to abut the projected needs at a minimum total cost. embarrass the following items in your report 1. A schedule that shows the number of temporary employees that Davis should hire each month for each contract option.2. A epitome table that shows the number of temporary employees that Davis should hire under each contract option, the associated contract cost for each option, and the associated training cost for each option. bequeath summary totals showing the total number of temporary employees hired, total contract costs, and total training costs.3. If the cost to train each temporary employee could be reduced to $700 per month, what effect would this heighten have on the hiring plan? Explain. talk about the implications that this effect on the h iring plan has for identifying methods for reducing training costs. How much of a reduction in training costs would be required to change the hiring plan based on a training cost of $875 per temporary employee?4. Suppose that Davis hired 10 full-time employees at the beginning of January in order to satisfy part of the labor requirements over the next six months. If Davis can hire full-time employees for $16.50 per hour, including fringe benefits, what effect would it have on total labor and training costs over the six-month period as compared to hiring only temporary employees? Assume that full-time and temporary employees both work approximately 160 hours per month. Provide a recommendation regarding the decision to hire additional full-time employees.