Optimizing Temporary Workforce
Scheduling for Renova
Workforce Scheduling
Overview
Renova, a manufacturing company with two sites in Australia, faces
challenges in workforce scheduling due to fluctuating product demand from
month to month. To address this issue, Renova started hiring temporary
workers from BK, a company specializing in providing temporary employees
in Australia. BK offered three contract options that differ in terms of the
length of employment and the cost.
Contract Options
One Month: $1500 per employee
Two Months: $3500 per employee
Three Months: $5300 per employee
The longer contract periods are more expensive because BK experiences
greater difficulty finding temporary workers willing to commit to longer
work assignments.
Projected Employee Needs
Renova projects the following needs for additional employees over the next
six months:
| Month | Expected Employees | | --- | --- | | January | 25 | | February | 10 | |
March | 15 | | April | 30 | | May | 30 | | June | 20 |
Renova can hire as many temporary employees as needed under each of the
three contract options. For instance, if Renova hires five employees in
January under Option 2, BK will supply Renova with five temporary workers
who will work for two months: January and February. Renova will have to
pay 5 × $3500 = $17,500 for these workers.
Training Costs
Renova's quality control program requires each employee to receive training
at the time of hire, even if the person worked for Renova in the past. Renova
estimates the cost of training to be $700 per employee.
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