Imagine you have some workers and some handheld computers that you can use to ta
ID: 1214362 • Letter: I
Question
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 150 items per hour. Two workers sharing a computer can together inventory 200 items per hour. Three workers sharing a computer can together inventory 220 items per hour. And four or more workers sharing a computer can together inventory 235 items per hour. Computers cost $125 each and you must pay each worker $30 per hour.If you assign one worker per computer, what is the cost of inventorying a single item?
Instructions: Round your answer to two decimal places.
$ per item
If you assign two workers per computer, what is the cost of inventorying a single item?
Instructions: Round your answer to two decimal places.
$ per item
If you assign three workers per computer, what is the cost of inventorying a single item?
Instructions: Round your answer to two decimal places.
$ per item
Instructions: Round your answer to two decimal places.
If you assign four workers per computer, what is the cost of inventorying a single item?
$ per item
How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?
worker(s) per computer
Explanation / Answer
a)
If you assign one worker per computer, what is the cost of inventorying a single item
If one worker uses one computer, he can inventory 150 items per hour
total cost= cost of computer + labor cost =125+ 30 =155
cost of inventorying a single item= 155/150= $1.03 per item
b) If you assign two workers per computer, what is the cost of inventorying a single item?
Two workers sharing a computer can together inventory 200 items per hour
total cost= cost of computer + labor cost =125+ 60 =185
cost of inventorying a single item= 185/200= $ 0.93 per item
c) If you assign three workers per computer, what is the cost of inventorying a single item?
Three workers sharing a computer can together inventory 220 items per hour.
total cost= cost of computer + labor cost =125+ 90 =215
cost of inventorying a single item= 215/220= $ 0.98 per item
d) If you assign four workers per computer, what is the cost of inventorying a single item?
And four or more workers sharing a computer can together inventory 235 items per hour
total cost= cost of computer + labor cost =125+ 120 =245
cost of inventorying a single item= 245/235= $ 1.04 per item
e) How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?
2 workers per computer ( beacuse it has least per unit cost)
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