Managerial - Report or

Managerial Report
This report is aimed at developing a model that will allow us to ascertain the number of
part-time workers that Davis should employ each month under each contract plan in order
to meet the projected needs at the best price-quality ratio.
Our first task is to develop a schedule showing the number of temporary workers that
Davis should employ monthly for each contract option. It is necessary to present a
decision model. The constraints, we are having in this task are the following, first the
terms under which Workforce unlimited provides temporary employees. They can be
summarized in the following way.
Option Length of Employment Cost
1 1 Month $2000
2 2 Month $4800
3 3 Month $7500
The second constraint is the company's requirements for temporary workers within some
period of time. They are summarized in this graphic.
Month Jan Feb Mar Apl May June

Employees 10 23 19 26 20 14
Needed
The objective function (Highlighted in Green in excel sheet (1 ans)) is to reduce the costs
to 313 525 dollars. It should also be considered that the number of employees hired must
be an integer.
The third condition of this task is the training cost that the company must spend for each
employee: it is 875 dollars.
The decision variables in this task are the number of employees the company should hire,
each separate option , under which the employees are hired, and the month. The decision
variables can be presented in the following way. (Refer to 1ans in the Excel sheet).
Month Jan Feb Mar Apr May June
Option 1 0 7 0 0 0 0
Option 2 3 0 0 0 0
Option 3 7 6 6 14
2.
The second part of our task is to present a summary table showing the number of part-
time workers that Davis should employ under each contract option, the associated
contract cost for each option, and the associated training cost for each option. This task
has the same constraints. This table can be presented in the following:
Option Employees Hired Training Cost Employment cost Total Cost
1 7 $6,125 $14000 $20,125
2 3 $2,625 $14,400 $17,025
3 33 $28,875 $247,500 $2,76,275
Grand Total $3,13,525
3.
If the training cost for each temporary employee can be reduced to $700, the solution will
change. It should be mentioned that the constraints for this task have the following
constraints, they are the number of people needed per month, the options according to
which the workers are provided by Workforce Unlimited. The only constraint that is
changed is the training costs.
The decision variables can be presented in the following way:
Option 1 10 23 19 26 20 14
Option 2 0 0 0 0 0 0
Option 3 0 0 0 0 0 0
Thus, we may arrive at the conclusion that the total cost will be $302,400 (Refer to the
sensitivity report). The minimum reduced gradient is 75 (after 0), so if we cut down the
cost by more than $75 for the training the scheduling will change. In this case, the
reduction was more than $75 hence the schedule changes.
If we suppose that the employment cost can be cut down by more than $75, the change in
the total cost does not only depend on the reduction in training cost but also the reduction
in cost from rescheduling. This will define our attempts to cut down on the training cost.
A minimum $75 reduction in training costs would be needed to alter the hiring plan based
on a training cost of $875 per part-time worker.
4)
Supposing that the company employed 10 full-time workers at the beginning of January to
meet part of the labor requirements over the next six months. If Davis can employ full-
time workers for &16.50m per hour, fringe benefits inclusive, what consequences would it
have on total labor and training costs over the six-month period as compared to hiring
only temporary employees. Provided, that full-time and temporary workers both works
approximately 160 hours per month. It is possible to come up with the following solution
to the problem this model can be represented in the following way.
Temporary Employees Hired
Option 1 0 7 0 0 0 0
Option 2 0 0 0 3 0 0
Option 3 0 6 3 4 0 0
Full-time employees hired

January February March April May June
Full-Time
Employees 10 0 0 0 0 0
Thus, we may arrive at the conclusion that with help of this model total costs is reduced
to $313175 which includes costs for 10 Full timers $167150 and part timers $146025. If
we add additional full timers there will be more cost. So employing only 10 full timers in
the start will be an optimized solution. Total costs are highlighted in the excel sheet (4
ans) sepertely.

Managerial - Report or

Uploaded by

Copyright:

Available Formats

Managerial - Report or

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Managerial - Report or

Uploaded by

Copyright:

Available Formats

Managerial Report

Month Jan Feb Mar Apl May June

Full-time employees hired

You might also like