Question

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.
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 1