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The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area.

The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, 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 6,000, 12,000, 19,000, and 9,000, respectively. each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $18 for each overtime hour. Ovetime 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 $3,000, and the cost of laying off a worker is $2,000. Subcontracting is not permitted.


  1. Find a level staffing plan that relies just on overtime and the minimum aomount of undertime possible. Overtime can be used to its limits in any quarter. What is the toal cost of the plan and how many undertime hours does it call for?

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For this case first you have to find the number of overtime hours which is 20% of 500 hours where you... View the full answer

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