Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HURRY Problem 6 Question Help Gretchen's Kitchen is a fast-food restaurant located in an ideal spot near the local high school. Gretchen Lowe must

PLEASE HURRY image text in transcribed
Problem 6 Question Help 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 plan. The only menu items are hamburgers, chili, soft drinks, shakes, and french fries. A sample of 1,000 customers taken at random revealed that they purchased 2.100 hamburgers, 200 pints of chill, 1,000 soft drinks and shakes, and 1,000 bags of french fries. Thus, for purposes of estimating staffing requirements, Lowe assumes that each customer purchases 2.1 hamburgers, 0.2 pint of chili, 1 soft drink or shake, and 1 bag of french fries. Each hamburger requires 4 minutes of labor, a pint of chili requires 3 minutes, and a soft drink or shake and a bag of fries each take 2 minutes of labor. The restaurant currently has 10 part-time employees who work 80 hours a month on staggered shifts. Wages are $400 per month for regular time and $7.50 per hour for overtime. Hiring and training costs are $250 per new employee, and layoff costs are $50 per employee. Lowe realizes that building up seasonal inventories of hamburgers (or any of the products) would not be wise because of shelf-life considerations. Alsoany 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 20 percent of regular.time capacity on overtime. Maintain a base of 10 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 80 hours per month, except when overtime is needed. The projected demand by month (number of customers) for next year is as follows: Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec # Customers 3,200 2,500 3,500 4,000 3,500 4,100 4,800 4,000 3,900 3,700 3,600 3.200 Develop the schedule of service requirements (in hours) for the next year. (Enter your responses as real numbers rounded to one decimal place) Nov Month Jan Feb Mar Reqmnts(hrs) 693.3 541,7 758,3 Apr May 866.7 758 3 June 888.3 July 1040 Aug 866.7 Sept Oct 8458017780 Dec 693.3 Which strategy is most effective? The is the most effective strategy, with a total cost of $(Enter your response as an integer) 2 Enter your answer in the answer box and then click Check Answer Clear All Check Answer All parts showing to search O II Problem 6 Question Help 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 plan. The only menu items are hamburgers, chili, soft drinks, shakes, and french fries. A sample of 1,000 customers taken at random revealed that they purchased 2.100 hamburgers, 200 pints of chill, 1,000 soft drinks and shakes, and 1,000 bags of french fries. Thus, for purposes of estimating staffing requirements, Lowe assumes that each customer purchases 2.1 hamburgers, 0.2 pint of chili, 1 soft drink or shake, and 1 bag of french fries. Each hamburger requires 4 minutes of labor, a pint of chili requires 3 minutes, and a soft drink or shake and a bag of fries each take 2 minutes of labor. The restaurant currently has 10 part-time employees who work 80 hours a month on staggered shifts. Wages are $400 per month for regular time and $7.50 per hour for overtime. Hiring and training costs are $250 per new employee, and layoff costs are $50 per employee. Lowe realizes that building up seasonal inventories of hamburgers (or any of the products) would not be wise because of shelf-life considerations. Alsoany 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 20 percent of regular.time capacity on overtime. Maintain a base of 10 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 80 hours per month, except when overtime is needed. The projected demand by month (number of customers) for next year is as follows: Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec # Customers 3,200 2,500 3,500 4,000 3,500 4,100 4,800 4,000 3,900 3,700 3,600 3.200 Develop the schedule of service requirements (in hours) for the next year. (Enter your responses as real numbers rounded to one decimal place) Nov Month Jan Feb Mar Reqmnts(hrs) 693.3 541,7 758,3 Apr May 866.7 758 3 June 888.3 July 1040 Aug 866.7 Sept Oct 8458017780 Dec 693.3 Which strategy is most effective? The is the most effective strategy, with a total cost of $(Enter your response as an integer) 2 Enter your answer in the answer box and then click Check Answer Clear All Check Answer All parts showing to search O

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

More Books

Students also viewed these Finance questions