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Mathematics, 31.03.2022 18:10 tgeorge95
Nation-Wide Bus Lines is proud of its six-week bus driver-training program that it conducts for all new Nation-Wide drivers. As long as the class size remains less than or equal to 35, a six-week training program cost Nation-Wide $22,000 for instructors, equipment, and so on. The Nation-Wide training program must provide the company with approximately five new drivers per month. After completing the training program, new drivers are paid $1600 per month paid to each idle new driver as a holding cost necessary to maintain a supply of newly trained drivers available for immediate service. Viewing new drivers as inventory-type units, how large should the training classes be to minimize Nation-Wide’s total annual training and new driver idle-time cost? How many training classes should the company hold each year? What is the total annual cost associated with your recommendation?
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