Concept explainers
Interpretation:
Requirement of number of FTE staff in May through August.
Concept Introduction:
FTE is (Full time equivalent) is the number of hours a full time employee works in a stipulated time period. It shows an average hours for work.
Explanation of Solution
Variables used to calculate FTE staff are:
- Month
- Number of days in a month
- Average
forecast of a month - Percentage in product mix
Formula to be used are:
.
For the four-month time horizon, the mix percentages will remain the same as given.
Month | May | |||
Working days | 22 | |||
Total forecast | 750 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 165.00 | 3.60 | 594.00 |
2 | 17 | 127.50 | 2.00 | 255.00 |
3 | 13 | 97.50 | 1.70 | 165.75 |
4 | 12 | 90.00 | 5.50 | 495.00 |
5 | 10 | 75.00 | 4.00 | 300.00 |
6 | 9 | 67.50 | 3.00 | 202.50 |
7 | 7 | 52.50 | 2.00 | 105.00 |
8 | 5 | 37.50 | 2.00 | 75.00 |
9 | 3 | 22.50 | 1.50 | 33.75 |
10 | 2 | 15.00 | 4.00 | 60.00 |
Total | 100 | 750 | 2286 | |
Required # of workers | 15 |
Month | June | |||
Working days | 20 | |||
Total forecast | 825 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 181.50 | 3.60 | 653.40 |
2 | 17 | 140.25 | 2.00 | 280.50 |
3 | 13 | 107.25 | 1.70 | 182.33 |
4 | 12 | 99.00 | 5.50 | 544.50 |
5 | 10 | 82.50 | 4.00 | 330.00 |
6 | 9 | 74.25 | 3.00 | 222.75 |
7 | 7 | 57.75 | 2.00 | 115.50 |
8 | 5 | 41.25 | 2.00 | 82.50 |
9 | 3 | 24.75 | 1.50 | 37.13 |
10 | 2 | 16.50 | 4.00 | 66.00 |
Total | 100 | 825 | 2514.6 | |
Required # of workers | 18 |
Month | July | |||
Working days | 22 | |||
Total forecast | 900 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 198.00 | 3.60 | 712.80 |
2 | 17 | 153.00 | 2.00 | 306.00 |
3 | 13 | 117.00 | 1.70 | 198.90 |
4 | 12 | 108.00 | 5.50 | 594.00 |
5 | 10 | 90.00 | 4.00 | 360.00 |
6 | 9 | 81.00 | 3.00 | 243.00 |
7 | 7 | 63.00 | 2.00 | 126.00 |
8 | 5 | 45.00 | 2.00 | 90.00 |
9 | 3 | 27.00 | 1.50 | 40.50 |
10 | 2 | 18.00 | 4.00 | 72.00 |
Total | 100 | 900 | 2743.2 | |
Required # of workers | 18 |
Month | July | |||
Working days | 22 | |||
Total forecast | 775 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 170.50 | 3.60 | 613.80 |
2 | 17 | 131.75 | 2.00 | 263.50 |
3 | 13 | 100.75 | 1.70 | 171.28 |
4 | 12 | 93.00 | 5.50 | 511.50 |
5 | 10 | 77.50 | 4.00 | 310.00 |
6 | 9 | 69.75 | 3.00 | 209.25 |
7 | 7 | 54.25 | 2.00 | 108.50 |
8 | 5 | 38.75 | 2.00 | 77.50 |
9 | 3 | 23.25 | 1.50 | 34.88 |
10 | 2 | 15.50 | 4.00 | 62.00 |
Total | 100 | 775 | 2362.2 | |
Required # of workers | 16 |
In summary, the FTEs required can be written in the following table:
Month | FTE |
May | 15 |
Jun | 18 |
Jul | 18 |
Aug | 16 |
Want to see more full solutions like this?
- Deb Bishop Health and Beauty Products has developed a new shamp0o and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Hire Layoff (Units) Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers 1 1,400 2 1,000 Unit cost 3 1,600 Overtime 4 1,300…arrow_forwardOPERATIONS PLANNING AND SCHEDULING (OP&S) What [Demand Management] methods are generally the most effective and reliable, regarding OP&S, and what are the visible benefits and any fundamental weaknesses of those methods?arrow_forwardDefine "what-if analysis." How can a spreadsheet be used to plan capacity?arrow_forward
- Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…arrow_forwarddescribe what is the purpose of the Gantt chart as a scheduling tool and when do they using a Gantt chart instead of a network based method?arrow_forwardThe opening backlog is 800 units. Forecast demand is as shown here. Calculate theweekly production for level production if the backlog is to be reduced to 100 units.arrow_forward
- Explain the relationship between priority versus capacity that must exist within the production planning and control area of an industry.arrow_forwardCapacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forwardCapacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?arrow_forward
- Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?arrow_forwardDeb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. E Click the icon to view the four-quarter forecast. E Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 1,000 1,600 3 Overtime 4…arrow_forwardExplain what is the purpose of the Gantt chart as a scheduling tool and when they use a Gantt chart instead of a network based method?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.