Question
A famous restaurant chain decided to open three new branches in your city: one in downtown area (DT), one in a residential area (RA), and
A famous restaurant chain decided to open three new branches in your city: one in downtown area (DT), one in a residential area (RA), and one in a touristic area (TA). All branches will open daily from 12pm to 10pm. According to a study done by the analyst team, the minimum number of employees needed in each branch at each hour is shown in table 1.
Table 1
Time | Branch 1 (DT) | Branch 2 (RA) | Branch 3 (TA) |
12pm-1pm | 12 | 9 | 5 |
1pm-2pm | 12 | 9 | 5 |
2pm-3pm | 11 | 8 | 6 |
3pm-4pm | 9 | 8 | 6 |
4pm-5pm | 7 | 9 | 8 |
5pm-6pm | 6 | 10 | 8 |
6pm-7pm | 6 | 10 | 10 |
7pm-8pm | 5 | 11 | 12 |
8pm-9pm | 5 | 9 | 12 |
9pm-10pm | 4 | 7 | 10 |
The restaurant chain management offered three types of jobs to hire employees for the three new branches: 2- hours part timers, 4-hours part timers, 8-hours full timers. The 2-hours part timers are only available to work after 4pm.
The average cost per employee hour is different for each type and each branch (Cost includes salaries, insurance, transportation, etc.). Table 2 shows the average cost per employee hour ($/hour) for each branch.
Table 2
Employee type | Branch 1 | Branch 2 | Branch 3 |
A (2-hours) | 16 | 10.5 | 12 |
B (4-hours) | 14 | 9.5 | 11 |
C (8-hours) | 12 | 8 | 9 |
The number of applicants who applied for each type of jobs is 30 for the 2-hours part time jobs, 35 for the 4-hours part time jobs, and 15 for the full-time jobs. All applicants agreed to work in any of the new branches if hired.
The restaurant chain management has a policy that there should be at least one full time employee available at each branch when the branch closes at the end of the day.
Your team was chosen by the restaurant chain management to consult them to find the best action for this case. The type of analysis that they are looking for is:
- What would be the number of employees required from each type (i.e. 2-hour part timers, 4-hours part timers, and 8-hours full timers) in each branch that will minimize the total daily cost? What would be the daily cost in each branch in this case?
- How many extra employee hours will be available in each branch at each hour after the required hours are fulfilled?
- How much could the company saves daily if five more full-time employees were available to hire?
- Which branch costs the most for satisfying the policy of having one full time employee available at the end of the day?
(Hint: You can use the sensitivity report to answer questions 3 and 4)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started