Which strategy is most effective 1-chase strategy with a base of workforce,pure chase strategy or level workforce with overtime ?? With a total cost of .......$??
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 tems 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 chili 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 chill, 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 hou 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 not satisfied is a lost sale and must be avoided. Three strategies come to mind. hamburgers (or any of the products) would not be wise because of shelf-life considerations. Also, any demand 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 Utlize 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 more than 80 hours per month, except when overtime s. She also follows a policy of not using an employee is needed. The projected demand by month (number of customers) for next year is as follows: Month Jan Feb Mar AprMay June July Aug Sept Oct Nov Dec # Customers 3.200 2,500 3.500 3.900 3.500 4.000 4.800 4.100 3.800 3,800 3700 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.) Month Jan Feb Mar Ap May June July Aug Sept Oct Nov Dec Reqmnts(hrs)