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
Describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in spec

1. What are the four functions of management? Define them. How do these functions relate to the goals of an organization? What is the relationship of efficiency and effectiveness t

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possi

Alfonzo's Pizzeria purchased its building 8 years ago at a cost of $76,000. The building is currently valued at $212,000. Alfonzo's has other fixed assets that cost $58,000 and are

Which of the following industries is most likely to use database marketing? a. A supermarket chain b. A school system c. A local restaurant d. A p

what do you understand by "line balancing"? What happens if balance doesn''t exist ?

Question 1: What are the various decisions Operations Managers are called upon to make in the manufacturing and service Industries for the various operational areas under his r

Soda Dispensing Systems Inc. (SDS) was owned by two shareholders, each of whom owned half the stock. One shareholder was president and the other was vice president. Their sharehold

Question: a) What is a strategy? b) Describe what is meant by a franchise. c) Henry Fayol put forward 6 primary functions of management. State the 6 functions and brief