(HW1,Q3): PLEASE INCLUDE STEPS TO FINDING ANSWER FOR A THUMBS UP. Charles Lackey
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Question
(HW1,Q3): PLEASE INCLUDE STEPS TO FINDING ANSWER FOR A THUMBS UP.
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 35% 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. (Productivity remains the same.) If the bakery currently makes 1,800 loaves per month with a labor productivity of 2.344 loaves per labor hour, then Lackey will need to add worker(s) to meet the increased demand (recall that each worker works 160 hours per month and round your response up to the next whole number).Explanation / Answer
No. of Loaves per month = 1800
Labor productivity = 2.344 loaves per labor hour
Total no. of labor hour = 1800/2.344
= 768 labor hour
Each labor works for 160 hours per month then no. of labor = 768/160
= 5 labor
Increase in demand =35 %
New demand of Loaves= 2430
productivity remain same i.e 2.344 loaves per labor hour
New total no. of labor hour = 2430/2.344
= 1037
total no. of labor required = 1037/160
= 7
Thus, lackey will need to add 2 workers to meet increased demand.
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