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Suppose a close friend has decided to open up a food truck to serve lunch in downtown Detroit. She has hired a consultant to estimate
Suppose a close friend has decided to open up a food truck to serve lunch in downtown Detroit. She has hired a consultant to estimate the lunchtime (11:00-2:00) demand for the truck and they have given her the following forecast: M-F, 250 customers over the three hour block; and Saturday and Sunday, 150 customers over the three hour lunch block. The truck has now been open for three weeks with lots of advertising, deals, and extra staff and the following customer counts have been observed over the three hours each day. She estimates that each staff member gives a capacity of about 25 customers per hour at the truck. (20 pts total) A) Prepare a forecast of your own based on the actual data, be clear how you developed it and show the MAD and CFE for your forecast. ( 8 pts) B) Recommend a staffing level for M-F and Sa-Su. (4 pts) C) What is the numerical capacity cushion that you recommended? (4 pts) D) Justify specifically why you advise this staffing level and capacity cushion? (4 pts)
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