You have two full time employees who work 8 hours per day. The working hours for the full-time employees is fixed, and is as follows:

•

One worker starts work at 6 am, works four hours, takes an hour off, and returns to work for four hours.

•

The other full-time worker starts work at 9 am, works 4 hours, takes an hour off, and returns to work for four hours.

The rest of the workers currently work four-hour shifts.

Part time employees are paid at $12.40/hour. The employee multiple (the amount it costs the company to have the employee - such things as social security and workman's compensation payments) for these workers is 1.25. (i.e., It costs you salary times multiple for each employee)

Demand:

Requirements for workers, by hour, for the hours of operation, are as follows:

07-08 9

08-09 9

09-10 9

10-11 3

11-12 3

12-13 3

13-14 6

14-15 12

15-16 12

16-17 7

17-18 7

a.

Develop a minimum cost schedule for the part-time employees. (How many start at each hour?)

b.

What is the total payroll for the part-time employees?

c.

How many part-time shifts are needed?

d.

Does it appear advisable to utilize any 3-hour shifts?

Assume the ability to assign part-time workers to three hour or four hour shifts.

a.

Develop a new minimum cost schedule for part-time workers.

b.

What is the cost savings, if any, for this revised schedule compared with one using only 4-hour shifts?

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