How many weeks must the surge in demand last


A manager faces peak (weekly) demand for one of her operations, but is not sure how long the peak will last. She can either use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is $500 per week, overtime is $750 per week, the hir- ing cost is $2,000, and the layoff cost is $3,000. Assuming that people are available seeking such a short-term ar- rangement, how many weeks must the surge in demand last to justify a temporary hire?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: How many weeks must the surge in demand last
Reference No:- TGS079465

Expected delivery within 24 Hours