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Design Of Driving Training Classes

Question

Nation -Wide Bus Lines (NWBS) conducts training classes for new drivers. The classroom can hold 35 students. As long as the class size is less than or equal to 35, the training program costs $22,000 per class. Ignore the time consumed in training.

After completing the training program, drivers are paid $1,600 per month stipend until a full-time driver position is open. After trained driver begins the job, the driver is paid a regular salary of $4,000 per month. The NWBS needs 5 new drivers per month.

Goal is to minimize the total cost (training cost + stipend).

a.  How large should the training classes be?
b.  How many training classes should the company hold each year?
c.  What is average waiting time for a trained driver? (waiting time =  time between training completion & new job beginning date)
 
Summary

The question belongs to Operations Management and it discusses about the size of the training classes, the number of training classes to be held every year and the average waiting time for a trained driver, etc have been calculated in the solution.

Total Word Count 226

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