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.