Question

As a result of increasing student population at the University the nearby Pizza Hut restaurant is realizing record sales. It is considering adding a new oven to bake additional pizzas. However, the daytime supervisor recommends simply employing more workers. How should the manager decide which course of action to take?

Answer 1

Answer:
The manager can make a list of pros and cons of of adding an oven and employing more workers whichever seems to increase the productivity of the restaurent can do. Few points to keep in mind is given below:

• First restaurant needs to understand the increase in student population is a permamnent thing, it is not just increasing because of some celebration going on in the universoty or some one time huge event. If its a one time event then hiring more workers temporarily will do the job instead of purchasing new over permamnently.
• We should see the lifetime of the oven and how much does it cost, what is the incremental benifit we can achieve with the same during its life time, after comparing it with labour employed, we can take an informed decision, which of the approach in more productive for the restaurant.
• Combined of both the approach can also be follower we can increase the over and bit of worker to handle the new oven, to achieve more productivity.
• The manager should identify the bottleneck as well, if its serving people and manual thing apart from wait time he can think of higher more employees, on the other hand if its solely wait time due to baking of pizza oven could be the better choise.

By calcukating the points mentioned above, manager can take informed decision of purchasing a new oven or employing more worker.

(plz give me a thums up...if my answer helped you and if any suggestion plz comment, Yr thums up boost me)