HR Café has 42 years of experience in the service industry. The company has over150 cafes, 13 hotels/ casinos and live music venues around the globe. They modify their menus from classical Burgers and chicken wings to higher end items such as lobster tails and stuffed veal chops. HR Cafe’s sales are driven by tourists, so business fluctuation is high. Therefore, the management plans to recruit employees based on the seasonal business. The café gives more emphasis on live music and redesigns the restaurants to accommodate the changing tastes. To determine: How decisions of operations management are applied at HR Cafe.

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HR Café has 42 years of experience in the service industry. The company has over150 cafes, 13 hotels/ casinos and live music venues around the globe. They modify their menus from classical Burgers and chicken wings to higher end items such as lobster tails and stuffed veal chops. HR Cafe’s sales are driven by tourists, so business fluctuation is high.

Therefore, the management plans to recruit employees based on the seasonal business. The café gives more emphasis on live music and redesigns the restaurants to accommodate the changing tastes.

To determine: How decisions of operations management are applied at HR Cafe.

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As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gilbert, you decide that there will definitely be a market and that your firm should enter that market. However, because rustic furniture has a different finish than your standard offering, you decide you need another process line. There is no doubt in your mind about the decision, and you are sure that you should have a second process. But you do question how large to make it. A large process line is going to cost $425,000; a small process line will cost $300,000. The question, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Rosalita Ferrera of Ferrera Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of profit from sales as large as $625,000 and a one-out-of-three chance as low as $350,000. With a large…

As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gilbert, you decide that there will definitely be a market and that your firm should enter that market. However, because rustic furniture has a different finish than your standard offering, you decide you need another process line. There is no doubt in your mind about the decision, and you are sure that you should have a second process. But you do question how large to make it. A large process line is going to cost $425,000; a small process line will cost $350,000. The question, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Rosalita Ferrera of Ferrera Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of high demand resulting in $600,000 profit from sales and a one-out-of-three chance of low demand…