Question: 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

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

285

280

290

268

265

145

163

290

281

276

280

278

176

151

She estimates that each staff member gives a capacity of about 25 customers per hour at the truck. A) Prepare a forecast based on the actual data rather than the consultants forecast, be clear how you developed it and show the MAD and CFE for your forecast. 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. (15 pts)

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