Care Ready Training (CRT) is an award-winning and well-respected training provider for the Australian aged care sector. Care Ready generally operates under contract with different aged care service providers to train a specified number of carers in personal care, disability support and basic nursing skills. InterCare Australia (ICA) is interested in having Care Ready Training (CRT) provide a training program for its newly recruited carers and has submitted a contract proposal. ICA requires a contract as it wants to ensure a steady supply of newly trained personal support and disability carers to manage high growth across its multiple age care facilities. Care Ready Training (CRT) has estimated that a 4-week certificate level carer training course costs $4000 for the instructor, $800 for equipment and facilities and $200 for office administration and support fees. In addition, ICA incurs an opportunity cost of $1500 per month for each carer because they are being paid for the training duration but cannot be utilised productively. 1.) If ICA requires five trained carers per month for the currently foreseeable future, determine the class size (how many carers should be trained in a single training class) to minimize the total annual relevant cost. Briefly explain your interpretation. Assume that according to the signed contract Care Ready Training guarantees that trained carers will be available, and no shortages will apply. – 4 marks (hint – determining class size would be equivalent to determining EOQ in the given context with the opportunity cost being a form of holding cost for carers in training) 2.) Considering the answer in 1.) above, how many classes should be offered each year by Care Ready Training(CRT) to ICA and what is the total annual relevant cost to be beared by ICA? – 4 marks 3.) If the class size found in 1.) is not an integer, round it (both up and down) and compare the effect on total annual relevant cost. You can use a table to present the comparison. – 4 marks 4.) An additional facility recently acquired by InterCare Australia (ICA) has increased the demand for trained carers for next year. Its estimated that as many as eight newly trained carers will be required per month. Work out the answers for 1.) and 2.) above considering the new situation. What if a sudden recruitment of prior trained carers with experience has altered the demand for trained carers to be only four per month? Compare your answers for these two situations in a table. – 8 marks 5.) Construct an excel data table and perform sensitivity analysis on total annual relevant cost for variability in the training associated opportunity cost of $1500 per month per each carer. Consider the cost to vary from $1000 to $2000 in $100 increments. – 4 marks 6.) In 1.) Care Ready Training (CRT) has guaranteed that the trained carers would be available as required. Now CRT is not so sure and is thinking to renegotiate the contract allowing for training delays. ICA is agreeable to some delays but has found that this would cost the company an additional $1600 per month. A 1-week delay would incur $400 in additional costs, 2-weeks $800 and so on. Find out how the delays would affect the answers in 1.) and 2.). – 6 marks