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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 stafing plan. The

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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 stafing plan. The only menu items are hamburgen, chill. sot drinks, shakes, and french fries. A sample of 1,000 eustomers taken at random revealed that they purchased 2,100 hamburgers, 200 pints of chill, 1,000 sof 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 ehili, 1 sof drink or shake, and 1 bag of freneh flos Each hamburger requires 4 minutes of laboc, a pint of chili requizes 3 minutes, and a soft drink or shake and a bag of thes each take 2 minutes of labor. The restaurant currensy has 10 part-lime employees who work 80 hours a month on staggered shits. Wages are $400 per mocth for regular tine and $7.50 per hour for overtme. Firing and training costs are $250 per new employee, and layoft costs are $0 per enployee. Lowe realizes that bulding up seasonal invertones of hamburgers (or any of the products) would not be wse because of shes. Ife considerations. Ario, any demand not safisfied is a lost sale and must be avoided. Three stralegies come to mind. > Use a level strategy relying on overtime and undertime, with up to 20 percent ef regulartime capacty on overtime. > Maintain a base of 10 employees, hiring and loying off as needed to avoid any overtme. > Uilize a chase strategy, hiring and laying of employees as demand changes to aroid overtime. When performing her caiculations, Lowe always rounds to the next highest integer for the number of employees. She also folioms a policy of net using an employee more than 80 houn per month, except when overtime is needed. The projected dernand by monen (number of customers) for next year is as follems

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