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 $4.60 per hour. The total number of full-time and part-time employees needed varies with the time of the day as shown as follows.

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.
2. What is the total payroll for the part-time employees? How many part-time shifts are needed? Use the surplus employees to comment on the desirability of scheduling at least some of the part-time employees for 3 -hour shifts.
3. Assume that part-time employees can be assigned either a 3-hour or 4 -hour shift. Develop a minimum-cost schedule for the part-time employees. How many part-time shifts are needed and what is the cost savings compared to the previous schedule?

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