ADM 3301 Lecture Notes - Lecture 17: W. M. Keck Observatory, Layoff, Linear Programming
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Overtime wage rate = 1. 5 *14 = /hour. Hiring cost per hour (charged to the first quarter hired) = /(0. 2*480) hours= . Layoff cost per hour (charged to the first quarter after lay off) = /96 = . 5: if the 140 permanent nurses are employed throughout next year, calculate the regular permanent hours they will supply per quarter. Total hours per quarter supplied by 140 permanent nurses = 480 * 140 = 67,200. Total hours short = (71,953- 67,200)+(75,627-67,200)+( 79,290-67,200)= 25,270: suppose one temporary nurse is hired and laid off one quarter later. Cost per hour of using a temporary nurse in a quarter = +. 5+ = . 5 > = cost per hour of overtime by a permanent nurse. Yes, using overtime is cheaper than hiring temporary nurse: finally determine the best aggregate plan that minimizes the total cost. Based on the result in part c, use up to the maximum hours of overtime working in each quarter.