Answer Happy

Sanchez Trucking now needs to determine the number of employees loading and unloading trucks; suppose each employee can work a full 40 hours a week. The consultant advised management that they could supplement full-time employees with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each full-time employee hired by Sanchez costs $1,500 per week in wages and benefits, while a short-term employee costs $3,000 per week. Management has estimated the following probabilities for the work requirements. 800 1200 1600 Requirements (man- hours) Probability 0.3 0.4 0.3 20 25 30 Number of full-time employees If Sanchez wants to minimize the expected weekly costs, how many full-time employees should Sanchez permanently hire? 20 15 30 25