must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 6,500, 13,000, 20,000, and 9,000, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quar- ter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $20 for each overtime hour. Overtime is limited to 20 percent of the regular-time capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,100, and the 418 PART 2 CUSTOMER DEMAND MANAGEMENT 2. Bob Carlton's golf camp estimates the following staff require- ments for its services over the next 2 years. Ma foll Quarter 2 3 4 Demand (hours) 4,200 6,400 3,000 4,800 Quarter 5 6 Demand (hours) 4,400 6,240 3,600 4,800 Each certified instructor puts in 480 hours per quarter regu- lar time and can work an additional 120 hours overtime. Regular-time wages and benefits cost Carlton $7,200 per em- ployee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, train- ing, and certifying a new employee is $10,000. Layoff costs are $4,000 per employee. Currently, eight employees work in this capacity. An Eac wag reg forc sub for uni a. Find a staffing plan using the level strategy that allows for no delay in service. It should rely only on overtime and the minimum amount of undertime necessary. What is the total cost of this plan? em zer a. b. Use a chase strategy that varies the workforce level with- out using overtime or undertime. What is the total cost of this plan? c. Propose a better plan and calculate its total cost. 3. Continuing Problem 2, now assume that Carlton is permitted to employ some uncertified, part-time instructors, provided they represent no more than 15 percent of the total workforce hours (regular, overtime, and part-time) in any quarter. Each part-time instructor can work up to 240 hours per quarter, with no overime or undertime cost Labor costs for part-time instructors are $12 per hour. Hiring and training costs are b. C. 5.