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Management Studies

Draper Tax Company Problem Data

Cost data

Regular-time labor cost per hour $25.00

Overtime labor cost per hour $37.50

Temporary worker cost per hour $40.00

Hiring cost per permanent worker $2000.00

Firing cost per permanent worker $1200.00

Back-order cost $500.00

Capacity data

Beginning workforce 12 employees

Labor standard per service 12 hours

Regular-time hours per period 40 hours

Overtime hours per period 8 hours

Demand Data

Week 1 48 Clients Week 4 40 Clients

Week 2 36 Clients Week 5 38 Clients

Week 3 50 Clients Week 6 48 Clients

1. Calculate the size of the workforce needed for the company to meet average weekly demand.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92482514

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