A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier and bagger on each lane. One cashier mans all 4 self-checkouts (answering questions checking for un-scanned items taking coupons etc). Checkout on the new lanes takes 2 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition the electricity costs for both setups are $.05 per checkout while bagging (material) costs are $.10 per checkout with the old system and $.15 for the new system. The new lanes also require $100 in capital costs. Assume that the new lanes ar always in use for 8 hours per day (1 shift) and that a worker makes $10.00/hour.
a) How many checkouts did the old system provide in a shift?
b) How many checkouts does the new system provide?
c)What is the multifactor productivity for each system?
An industrial plant needs to make 150000 parts per month to meet demand. Each month contains 20 working days each of which allows for 3 separate 8 hour shifts. If material costs $15/part capital costs are $125000 and labor costs are $12.50/hr what is the multifactor productivity of the plant from part A?
An industrial plant needs to make 150000 parts per month to meet demand. Each mont contains 20 working days each of which allows for 3 seperate 8 hour shifts. If a worker can produce 10 parts per hour how many workers will be needed on each shift?
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