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of french fries. Thus, for purposes of estimating stafling reguirements, Lowe assumes that each cistomer purchases 2.1 hamburpers, 0.2 pint of chili, 1 solt drink

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of french fries. Thus, for purposes of estimating stafling reguirements, Lowe assumes that each cistomer purchases 2.1 hamburpers, 0.2 pint of chili, 1 solt drink or shake, and 1 bog of french lifies. Each hamburger tequires 4 minutes of loboc, a pint of chili requires 3 minutes, and a soft drink or shake and a bag of fines each take 2 minutes of labor. The restaurant currensy has 10 part-lime employees who work 80 hours a month on staggered shats. Wages are $400 per month for regular tme and $7.50 per hour for overtime. Hiripg ard training costs are $250 per new employee, and layoff costs are $50 per employee. Loase redizet that bulding up seasonat inventories of hamburgers (or any of the products) would not be wise because of sheit sife considerations. Also, any demand not satiffed is a lost sale and must be avoided. Thee stratogies come to mind. > Use a level strategy relying on overtme and undertime, with up to 20 percent of regular-time capacty on overtme. > Maintain a base of 10 employees, hiring and loging off as needed to aveid any overtime. > Utilize a chase stralegy, hiring and taying off employees as demand changes to avoid overtime. When performing her calculatons, Lowe always rounds to the next highest integor for the number of employees. She also follows a policy of not using an erroloyee more than 80 hours per month. except when overtime is needed. The projected demand by month (number of customers) for next year is as follows

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