EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 1, Problem 2.2VC
Summary Introduction

Case summary:

HR Café has 42 years of experience in the service industry. The company has over150 cafes, 13 hotels/ casinos and live music venues around the globe. The modified its menu from classical Burgers and chicken wings to higher end items such as lobster tails and stuffed veal chops. HR Cafe’s sales are driven by tourists, so business fluctuation is high.

Therefore, the management plan to recruit the employees based on the seasonal business. The café gives more emphasis on live music and redesigns the restaurants to accommodate the changing tastes.

To determine: How the productivity of the kitchen staff and wait staff at HR Café.

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In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations: Number of employees at the start of the first quarter 126 Cost per employee $3,500 per quarter Number of units produced per employee 100 per quarter Over-time Not allowed Demand for the first quarter 12,800 units Demand for the second quarter 12,500 units Demand for the third quarter 13,100 units Demand for the fourth quarter 12,100 units Cost of hiring a worker $3,000 Cost of laying off a worker $2,000 Inventory carrying cost per unit $250 per year Backorder cost per unit $125 per quarter Initial inventory 500     Develop a Level Capacity aggregate plan. Develop a Matching Capacity to Aggregate Demand plan that ensures zero inventory at the end of quarter 4. What is the cost of each plan?
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