Suppose a close friend has decided to open up a food truck to serve lunch in downtown Detroit. She has hired a consultant to estimate the lunchtime (11:00-2:00) demand for the truck and they have given her the following forecast: M-F, 250 customers over the three hour block; and Saturday and Sunday, 150 customers over the three hour lunch block. The truck has now been open for two weeks with lots of advertising, deals, and extra staff and the following customer counts have been observed over the three hours each day.
M
T
W
Th
F
Sa
Su
354
383
374
311
385
165
169
370
366
345
381
357
177
173
377
388
372
411
367
179
181
She estimates that each staff member gives a capacity of about 25 customers per hour at the truck. A) Prepare a new forecast based on the actual data, be clear how you developed it and show the MAD and CFE for your forecast’s performance. B) Recommend a staffing level for M-F and Sa-Su. C) What is the capacity cushion that you recommended for each of the two periods? D) Justify why you pick this staffing level and capacity cushion and make any other suggestions you deem relevant to manage the demand. (25 pts)