Assignment 1 – Case Analysis Instructions: StructureFeedback Mode: Feedback will be provided using inline marking tool and/or general comments. Learning Objectives Assessed: This assignment assesses Learning Objectives #1, #2, #3 and #5. Details: A case study is a scenario in a particular professional context which students are expected to analyse and respond to, guided by specific questions posed concerning the situation. In many cases, the scenario or case study involves a number of issues or problems that must be dealt with in a professional workplace. Case study assignment requires students to demonstrate their developing knowledge of theories and quantitative methods to make informed decisions and provide recommendations to either prevent or solve some of the issues in that scenario. • Students are required to o read the case and associated questions carefully. Highlight the main points of the case and any issues that you can identify. Read the questions closely and analyse what they are requiring you to do. Read the case again, linking the information that is relevant to each question you have been asked. o develop a LINEAR/INTEGER PROGRAMMING model to solve the problem. o answer to the case questions based on the output of your analysis. • Students are required to submit o a Word file to explain your mathematical models, to report your answers, and to write recommendations for decision makers based on the solutions, and o an Excel file to demonstrate how you use Solver to identify the solutions. You must ensure that the file is in a workable condition before the submission. • Submission process: o Under the 'Assignments' section of the Canvas, you can find a link titled as 'Case Study - Word file Only'. Click on the link and submit only the WORD file. o Under the 'Assignments' section of the Canvas, you can find a link titled as 'Case Study - Word & Excel Files'. Click on the link and submit both WORD and EXCEL files. It is important that you resubmit the Word file here. To submit the second file, you need to select 'Add Another File' link. • The naming convention for both Word and Excel files is: ‘Student Number_Student Name'. • Students must avoid using their nickname in the submission process. Student's name should match with The University records.
Case: Casual Lecturer SchedulingIDM Instruments has two manufacturing plants located in Melbourne, Victoria. Product demand varies considerably from month to month, causing IDM extreme difficulty in workforce scheduling. Recently IDM started hiring temporary workers supplied by Curio, a company that specialises in providing temporary employees for firms in the greater Melbourne area. Curio offered to provide temporary employees under three contract options that differ in terms of the length of employment and the cost. The three options are summarised: The longer contract periods are more expensive because Curio experiences greater difficulty finding temporary workers who are willing to commit to longer work assignments. Over the next six months, IDM projects the following needs for additional employees: Each month, IDM can hire as many temporary employees as needed under each of the three options. For instance, if IDM hires five employees in January under Option 2, Curio will supply IDM with five temporary workers who will work for two months: January and February. For these workers, IDM will have to pay 5($4800) = $24,000. Because of some merger negotiations under way, IDM does not want to commit to any contractual obligations for temporary employees that extend beyond June. IDM’s quality control program requires each temporary employee to receive training at the time of hire. The training program is required even if the person worked for IDM Instruments in the past. IDM estimates that the cost of training is $875 each time a temporary employee is hired. Thus, if a temporary employee is hired for one month, IDM will incur a training cost of $875, but will incur no additional training cost if the employee is on a two- or three-month contract.
Questions:Develop a model that can be used to determine the number of temporary employees IDM should hire each month under each contract plan in order to meet the projected needs at a minimum total cost. Include the following items in your report:
- A schedule that shows the number of temporary employees that IDM should hire each month for each contract option. (8 marks: 4 marks for developing mathematical model and 4 marks for reproduction of the model in Excel and solving the problem)
- A summary table that shows the number of temporary employees that IDM should hire under each contract option, the associated contract cost for each option, and the associated training cost for each option. Provide summary totals showing the total number of temporary employees hired, total contract costs, and total training costs. (4 marks)
- Suppose that IDM hired 10 full-time employees at the beginning of January in order to satisfy part of the labour requirements over the next six months. If IDM can hire full-time employees for $16.50 per hour, including fringe benefits, what effect would it have on total labour and training costs over the six-month period as compared to hiring only temporary employees? Assume that full-time and temporary employees both work approximately 168 hours per month. Provide a recommendation regarding the decision to hire additional full-time employees. (4 marks)
- If the cost to train each temporary employee could be reduced to $700 per month, what effect would this change have on the hiring plan? Explain. Discuss the implications that this effect on the hiring plan has for identifying methods for reducing training costs. How much of a reduction in training costs would be required to change the hiring plan based on a training cost of $875 per temporary employee? (4 marks)