A company sells medical supplies to hospitals and healthcarefacilities that are mostly located in the Michiana region. Thecompany has 150 employees, and it is about to decide whether partof them should be encouraged to work remotely, and if so, how manyemployees should do that. There are many aspects to be analyzedsuch as productivity and collaboration, but you will focus on thecosts of space and IT at the company’s main office versus the costsof working remotely.
The costs of office space include building rent and maintenance,utilities, cleaning, and insurance. The company estimates thatthose costs could be either one of three scenarios: (A) $60,000 permonth for a building where all employees can be accommodated; (B)$50,000 per month for a building that can accommodate 100employees; or (C) $40,000 per month for a building for 50employees.
The main costs of IT include the lease, operation and maintenanceof equipment (a desktop computer for each employee, and theoffice’s Wi-Fi access points, cabling, routers for the LAN/MAN) anda contract with a fixed Internet service provider. The equipmentcost is $7,500 per month for scenario (A), $5,500 for (B) or $3,500for (C). The cost with the fixed Internet service provider is (A)$5,000 per month for all employees; (B) $4,000 per month for 100employees; or (C) $2,500 per month for 50 employees.
If some of the employees no longer work frequently at the centraloffice, then the company can operate on a smaller office (i.e. B orC instead of A). On the other hand, the company will provide alaptop, smartphone and a cellular plan for each employee workingremotely. The company already has a corporate cellular contractwith Cerizon for some employees. If some employees are to workremotely, then the company will add them to the same contract. Thecontract includes the smartphones at no extra cost, and Cerizoncharges $10 per GB for employees who use less than 5GB per month,$8 per GB for employees who use 5GB or more but less than 10GB permonth, and $6 per GB for employees who use 10GB or more per month.The cost of each laptop is $1,000, which the company considers thatdepreciates linearly over its lifetime of 2 years.
What are the office and remote costs in scenarios (A), (B) and (C)?For the scenario with the lowest total cost, which employees shouldwork remotely? The IT department has a table with the average data traffic of fixed Internet for each employee.Assume that an employee working remotely would have 60% of his/herfixed Internet traffic added to the corporate cellular plan (theremaining 40% would use the employee’s home Internet, hotel, etc.,at no cost for the company). write about the high art inmusic
