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Chapter 5 Questions

Chapter 5 Questions

Q Chapter 5 Questions Answer the following items and upload your responses to the appropriate drop box by the due date. 1. Orange Sun Manufacturing, Inc. produces high quality sunglasses which are marketed and sold under various brand names. The production engineers have determined that each line employee accounts for approximately 10 units per labor hour. If employees work an average of 2000 hours per year, and projected sales for 2017 are 9.5 million units, how many line employees will we need for the coming year? (show you work) 2. If sales for 2016 were 9 million units, sales are expected to grow at a consistent rate, and productivity per employee is expected to be constant, how many line employees would estimate that we will need in 2018? 2016 Vice Presidents Managers Supervisors Sales Staff Line Employees Exit the Company Vice (10)Presidents8(.80)2(.20)Managers(25)2(.08)18(.72)5(.20)Supervisors(45)5(.11)26(.58)4(.9)10(.22)Sales Staff(150)1(<.01)7(.05)117(.78)25(.17)Line (450) Employees3(<.01)25(.06)322(.72)100(.22)Anticipated Labor Supply102436147322142Probabilities are in parentheses 3. Based on the availabilities in the Markov table above, and the value you calculated in question 1, how many line employees will we need to hire this year to meet estimated demand? 4. What are the decision criteria for assessing strategies when we have a....a. Labor shortageb. Labor surplus5. What are the key differences between employees and contractors?6. Which is more important in an applicant’s decision to apply for a position, the personnel policies or the recruiter, and why?7. Define the following terms: a. Employment at will b. Direct applicants c. Referrals d. Yield ratio e. Cost per hire

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1. The production capacity is – 10 units per labor hour. Projected sales – 9.5 million. Therefore, number of units will be – 9,500,000 units. The average working hours of labor available – 2,000 per year. Therefore, the number of required working hours of labor will be – 9,500,000 / 10 = 950,000 hours. The number of line employees needed for the coming year – 950,000 / 2000 = 475 line employees.