Problem 9-25 Western Family Steakhouse offers a variety of low-cost meals and qu

Question

Problem 9-25

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. The total number of full-time and part-time employees needed varies with the time of day as shown.

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.

(a) Develop a minimum-cost schedule for part-time employees. Optimal schedule for part-time employees: Starting Time Number of part-
time employees 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.

Explanation / Answer

Time Slot Nos. of Empl. Full Time Part Time Part Time of 8 empl PT of 2 empl -Shift 4hrs PT 3 empl 4 hr PT 5 empl 4 hr For 3hr shifts For 3hr shifts For 3hr shifts 4hr shift Reqd Shift 4hrs 11.00-12.00 9 1 8 8 8 12.00 -1.00 9 1 8 8 8 1.00-2.00 9 2 7 8 8 2.00 -3.00 3 2 1 8 1 3.00 -4.00 3 1 2 2 1 1 4.00 - 5.00 3 2 1 2 1 1 5.00 - 6.00 6 1 5 2 3 1 4 6.00 - 7.00 12 2 10 2 3 7 4 6 7.00 - 8.00 12 2 10 3 7 4 6 8.00 - 9.00 7 1 6 3 7 6 9.00 -10.00 7 1 6 7 6 Cost 4hr shift $608 243.2 60.8 91.2 212.8 Cost mixed shifts $501.60 182.4 22.8 22.8 91.2 182.4 Total cost reduced by= $106.40

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