1.11 Lake Charles sea ng. the boxes for fresh seafood per day, working in two 10
ID: 423717 • Letter: 1
Question
1.11 Lake Charles sea ng. the boxes for fresh seafood per day, working in two 10-hour shift Due to increased demand, plant managers have decided to oper- ate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day a) Calculate the company's productivity before the change in work rules and after the change b) What is the percentage increase in productivity? c) If production is increased to 700 boxes per day, what is the new productivity? Px at1.12 Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Lackey need to add? (Hint: Each worker works t g 160 hours per month.) .1.13 Refer to Probiem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean arn increase in his investment. This added investment has a cost of $100 per month, but he will achieve the same output (an increase to 1,875) as the change in labor-hours. Which is the better decision? a) Show the productivity change, in loaves per dollar, with an b) Show the new productivity, in loaves per dollar, with only an c) Show the percent productivity change for labor and increase in labor cost (from 640 to 800 hours). increase in investment ($100 per month more)Explanation / Answer
Given values:
Increased demand = 25%
Current production = 1,500 loaves per month
Labor productivity = 2.344 loaves per labor-hour
Number of hours per worker = 160 hours per month
Solution:
Monthly output of one worker is calculated as;
Monthly output of one worker = Labor productivity x Number of hours per worker
Monthly output of one worker = 2.344 x 160
Monthly output of one worker = 375.04 loaves per month
Increased demand is calculated as;
Increased demand = 25% of Current production
Increased demand = 25% x 1500
Increased demand = 375 loaves per month
From the above calculations, we can observe that the increased demand is equal to the monthly output of one worker. Therefore, number of workers that Lackey will need to add is one.
Answer: Number of additional workers = 1
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