Burgerama Case Study Burgerama is the hottest new burger restaurant and they just opened a new restaurant here in Sault Ste. Marie. Their best selling burger, “The Crabby Patty” is extremely popular and everyone is very excited to try one. Since their opening on Wednesday, they have seen the following sales in Crabby Patties. You as the manager are trying to estimate sales for the rest of the week. First Week of Operation Actual Sales of Crabby Patties Forecasted Sales of Crabby Patties Wednesday 415 —– Thursday 427 —– Friday 456 2 day moving average Saturday 475 3 day moving average Sunday 460 3 day moving average a) Using a 2 day moving average, what is the forecasted sales of Crabby Patties on Friday? b) Using a 3 day moving average, what is the forecasted sales of Crabby Patties on Saturday and Sunday? c) What is the difference in forecasted versus actual sales on Sunday? Burgerama prides itself on the fact that it makes its burgers fresh to order. The following flow chart shows the process of making The Crabby Patty and the time needed to prepare for the customer. d) What would the total work time (in minutes) to make the 415 burgers on Wednesday? e) On Sundday, if you had 11 employees making burgers, how many hours would they each need to work to complete the orders? Burgerama requires all employees who handle food to wear latex gloves for sanity reasons. The annual demand for gloves is 250 boxes of 200 per year. The order cost is $11 per order, and the carrying cost is 25 percent per box per year of the purchase cost of $20 per box. f) How many boxes of gloves should Burgerama order at one time? g) What is the time between orders? You have been operating now for 6 months. People are in love with your Crabby Patty. You want to experiment and create a new product, The Extra Crabby Patty

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