Western Family Steakhouse offers a variety of low-cost meals and quick service. Other than management,...

80.2K

Verified Solution

Question

Finance

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 $ .

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students