Explain what is the multifactor productivity for each system, Operation Management

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. What is the multifactor productivity for each system?

Posted Date: 2/5/2014 11:49:28 PM | Location : United States







Related Discussions:- Explain what is the multifactor productivity for each system, Assignment Help, Ask Question on Explain what is the multifactor productivity for each system, Get Answer, Expert's Help, Explain what is the multifactor productivity for each system Discussions

Write discussion on Explain what is the multifactor productivity for each system
Your posts are moderated
Related Questions
Identify the basic control issues at Unilever from all three levels? How do you think the control function should be organized and managed at Unilever?

What do you understand by “line balancing”? What happens if balance doesn’t exist?n..

Objectives of Operation Process chart 1. It helps to decide whether a further and more detailed record is needed. 2. It is used in the design stages to assist the layout of th

A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 93 parts per hour while running. The manager

Motivation and rewards: coaching for performance changes. References

To construct an electricity generating unit, a company has to install 60 items. One team takes on an average 30 days to install one item. A team works for 300 days/year and managem

Provide two examples of current leaders and describe how they demonstrate their leadership characteristic. What separate these characteristics from management techniques? How effec

Consider whether the implementation of the Sarbanes-Oxley Act supports ethical behaviour. Specifically, address Title 3 of SOX and whether you think SOX worked for financial instit

Explain important provisions of factory act, 1948. The significant provisions of Factories Act, 1948 are given below: a) Health: The following are the significant provisions

Should a manager be concerned with the grapevine within his or her organization? Why or why not? How does the grapevine develop? Is the grapevine a valid communication process? Sho