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Gretchen's Kitchen is a fast - food restaurant located in an ideal spot near the local high school. Gretchen Lowe must prepare an annual staffing
Gretchen's Kitchen is a fastfood restaurant located in an ideal spot near the local high school. Gretchen Lowe must prepare an annual staffing plan. The only menu items are hamburgers, chili, soft drinks, shakes, and french fries. A sample of customers taken at random revealed that they purchased hamburgers, pints of chili, soft drinks and shakes, and bags of french fries. Thus, for purposes of estimating staffing requirements, Lowe assumes that each customer purchases hamburgers, pint of chili, soft drink or shake, and bag of french fries. Each hamburger requires minutes of labor, a pint of chili requires minutes, and a soft drink or shake and a bag of fries each take minutes of labor.
The restaurant currently has parttime employees who work hours a month on staggered shifts. Wages are $ per month for regular time and $ per hour for overtime. Hiring and training costs are $ per new employee, and layoff costs are $ per employee.
Lowe realizes that building up seasonal inventories of hamburgers or any of the products would not be wise because of shelflife considerations. Also, any demand not satisfied is a lost sale and must be avoided. Three strategies come to mind.
Use a level strategy relying on overtime and undertime, with up to percent of regulartime capacity on overtime,
Maintain a base of employees, hiring and laying off as needed to avoid any overtime.
Utilize a chase strategy, hiring and laying off employees as demand changes to avoid overtime.
When performing her calculations, Lowe always rounds to the next highest integer for the number of employees. She also follows a policy of not using an employee more than hours per month, except when overtime is needed. The projected demand by month number of customers for next year is as follows:
tableMonthJan,Feb,Mar,Apr,May,June,July,Aug,Sept,Oct,Nov,Dec# Customers,
Develop the schedule of service requirements in hours for the next year. Enter your responses as real numbers rounded to one decimal place.
tableMonthJan,Feb,Mar,Apr,May,June,July,Aug,Sept,Oct,Nov,DecReqmntshrs
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