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Problem 4-25 Western Family Steakhouse offers a variety of low-cost meals and quick service. Other than management, the steakhouse operates with two full-time employees who

Problem 4-25

Western Family Steakhouse offers a variety of low-cost meals and quick service. Other than management, the steakhouse operates with two full-time employees who work 8 hours per day. The rest of the employees are part-time employees who are scheduled for 4-hour shifts during peak meal times. On Saturdays the steakhouse is open from 11:00 A.M. to 10:00 P.M. Management wants to develop a schedule for part-time employees that will minimize labor costs and still provide excellent customer service. The average wage rate for the part-time employees is $7.60 per hour, but the temp agency managing the part time staff will charge the steakhouse one extra dollar per hour for shifts starting after 3:00 PM. The total number of full-time and part-time employees needed varies with the time of day as shown.

Time Total Number of Employees Needed
11:00 a.m. - Noon 9
Noon - 1:00 p.m. 9
1:00 p.m. - 2:00 p.m. 10
2:00 p.m. - 3:00 p.m. 3
3:00 p.m. - 4:00 p.m. 3
4:00 p.m. - 5:00 p.m. 4
5:00 p.m. - 6:00 p.m. 6
6:00 p.m. - 7:00 p.m. 12
7:00 p.m. - 8:00 p.m. 12
8:00 p.m. - 9:00 p.m. 7
9:00 p.m. - 10:00 p.m. 7

One full-time employee comes on duty at 11:00 A.M., works 4 hours, takes an hour off, and returns for another 4 hours. The other full-time employee comes to work at 1:00 P.M. and works the same 4-hours-on, 1-hour-off, 4-hours-on pattern.

  1. Develop a minimum-cost schedule for part-time employees. What is the total payroll for the part-time employees? If required, round your answer to the nearest dollar. Total daily salary cost = $ How many part-time shifts are needed? Use the surplus variables to comment on the desirability of scheduling at least some of the part-time employees for 3-hour shifts. The input in the box below will not be graded, but may be reviewed and considered by your instructor.
  2. Assume that part-time employees can be assigned either a 3-hour or a 4-hour shift. Develop a minimum-cost schedule for the part-time employees. If your answer is zero, enter "0". Optimal schedule for part-time employees:
    Starting Time Number of part- time employees (4-hour shifts) Number of part- time employees (3-hour shifts)
    11:00 A.M.
    12:00 P.M.
    1:00 P.M.
    2:00 P.M.
    3:00 P.M.
    4:00 P.M.
    5:00 P.M.
    6:00 P.M.
    7:00 P.M.
    How many part-time shifts are needed? What is the cost savings compared to the previous schedule? If required, round your answer to the nearest cent. Total cost reduced to $ .

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