Table 10.2
Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods.

Costs associated with operations are as follows:
Wages = $800 per worker per month
Hiring cost = $300 per worker
Layoff cost = $200 per worker
The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions.
-Use the information in Table 10.2. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs but no overtime, is:
A) less than or equal to $42,000.
B) greater than $42,000 but less than or equal to $43,000.
C) greater than $43,000 but less than or equal to $44,000.
D) greater than $44,000.

Question

Table 10.2
Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods.
  
Costs associated with operations are as follows:
Wages = $800 per worker per month
Hiring cost = $300 per worker
Layoff cost = $200 per worker
The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions.
-Use the information in Table 10.2. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs but no overtime, is:
A) less than or equal to $42,000. 
B) greater than $42,000 but less than or equal to $43,000. 
C) greater than $43,000 but less than or equal to $44,000. 
D) greater than $44,000.

Quizplus · Accepted Answer

Without the specific details from Table 10.2, it's impossible to calculate the exact total cost of the staffing plan. However, the chase strategy, which involves adjusting workforce levels to match demand by hiring and laying off employees, can often lead to higher costs due to the expenses associated with hiring and layoffs. This strategy avoids overtime costs but incurs costs for adjusting the workforce. Given the lack of specific data, a precise calculation cannot be provided, but generally, such strategies can lead to significant costs, potentially exceeding $44,000 depending on the scale of hiring and layoffs required to chase the demand.

Table 10.2 Archie Toys Is a Retailer Operating Out of Wichita, Kansas