Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gretchen's Kichen is a fast-food restaurant located in an ibeal spot near the local high school. Gretchen towe must prepare an annual stafing plan, The

image text in transcribed
Gretchen's Kichen is a fast-food restaurant located in an ibeal spot near the local high school. Gretchen towe must prepare an annual stafing plan, The only menu items are hamburgers, chlil, sot drinks, shakes, and trench fries. A sample of 1,000 customers taken at random reveoled that they purchased 2, 100 hamburpers, 200 pints of chill, 1,000 sott drinks and shabes, and 1,000 bags of french fries. Thus, for purposes of estimating stafing requirements, Lowe assumes that oach customer purchases 2.1 hamburgers, 0.2 pint of chifi, 1 soft drink or shake, and 1 bag of french fries. Each hamburger requires 4 minutes of labor, a pint of chif requires 3 minutes, and a soft drink or shake and a bag of fres each take 2 minutes of liabor. The restaurant currently has 10 part-fme employees who work so hours a month on staggered shins. Wages ave $400 per monet for regular tme and $7.50 per bour for overtme. Hiring and training costs are $250 per new empiogee, and layoft conts are $$ per employee. Lowe realices that bulding up seasonal inventories of hamburgers (or any of the products) would not be wise because of shed-He considerations. Also, any demand not satiffed is a lost sale and must be avoided. Thece strategies come to mind. - Use a level strategy relying on ovirtege and undertme, with up 1020 percent of regulartime capacify on overtme. > Maintain a base of 10 employees, hitifg and laying off as needed lo avoid any overtme. > Uilze a chase strategy, hiring and laying off employees as demand changes to ovoid overtime. excopt when overtime is netded. The projected decnand by nonth (number of customers) for next year is as follows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Wildlife Habitat Management

Authors: Roel R. Lopez, Michael L. Morrison, Israel D. Parker

1st Edition

9781623495022

More Books

Students also viewed these General Management questions