Explain productivity change for labour and investment, Operation Management

Assignment Help:

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. As 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. Note: The bakery makes 1,500 loaves per month with a labour productivity of 2.344 loaves per labour-hour and each worker works 160 hours per month. Problem: After reading the information above, note that 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 an 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 labour hours. Which is the better decision? a. Show the productivity change, in loaves per dollar, with an increase in labour cost (from 640 to 800 hours). b. Show the productivity change with only an increase in investment ($100 per month more). c. Show the percent productivity change for labour and investment


Related Discussions:- Explain productivity change for labour and investment

Explain how are the quality of health care, How are the quality of health c...

How are the quality of health care and excellence in customer service related to each other?

Explain developing a risk matrix, How would you go about developing a risk ...

How would you go about developing a risk matrix? Give an example of the kinds of factors that should be evaluated.

Explain risk prevention strategies, Risk prevention strategies should inclu...

Risk prevention strategies should include less detailed planning training static designs and traditional systems all of the above none of the above

Explain service quality addresses, 1. Can some please help me with these f...

1. Can some please help me with these fill in's? I am not sure I have the right answers One Way to identidy goals is to identify best practices through a process known as________

Define predict the future of the movie rental industry, Evaluate Netflix's ...

Evaluate Netflix's current strategy and determine if the strategy is sustainable. Identify a Netflix strength and suggest how this strength may be leveraged in the market place to

Describe the mission- vision- values- and goals, The formal strategic plann...

The formal strategic planning process has five main steps. We are going to analyze at the first step involving corporate mission, vision, values and goals in the context of the com

Explain how is the search industry changing, How is the search industry cha...

How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?

Explain technique to develop a forecast for the expected, air travel on Mou...

air travel on Mountain Airlines for the past 18 weeks was: Week Passengers 1 404 2 410 3 420 4 415 5 412 6 419 7 424 8 433 9 438 10 440 11 446 12 451 13 455 14 460 15 466 16 474 17

Explain a computer-supply mail order house has a memory chip, A computer-su...

A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has

Explain what is the productivity, 1. A manufacturing company has a small pr...

1. A manufacturing company has a small production line dedicated to the production of a particular product. The line has four stations in serial. Inputs arrive at station 1 and the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd