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
Matthew Yachts, located in Montauk, Long Island, manufactured sailing yachts of all descriptions. The company had begun by building custom-designed yachts for a largely New York-ba

#quwhat is operations process design?what are the factors that effect a process design?estion..

Audio cables, INC. is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed cost are $14,000. Current sales volu

What is Customer Relationship Management? Describe the four-step framework for one-to-one marketing that can be adapted to CUSTOMER RELATIONSHIP MANAGEMENT marketing?

Your answers for your two questions should total at least 200 words 1. How can employers guard against pay inequities in the workforce? 2. Explain the meaning of disparate i

In what ways might the divisionalized forms of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organization

What are four significant pieces of legislation that evolved from the civil rights act of 1964

Nielsen ratings are very important to both advertisers and television programmers because the cost of television advertising time is based on this rating. A show's rating is the nu

Explain the basic idea underlying the contingency view. How would you go about identifying key contingencies facing an organization?

Dilution In the previous problem, what would the ROE on the investment have to be if we wanted the price after the offering to be $73 per share (assume the PE ratio still remains c