What is the average labor utilization

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Reference no: EM132208853

Consider a process consisting of three resources. Assume there exists unlimited demand for the product.

Resource 1 has a processing time of 4 minutes per unit.

Resource 2 has a processing time of 3 minutes per unit.

Resource 3 has a processing time of 2 minutes per unit.

All three resources are staffed by 1 worker and each worker gets paid $11 per hour.

a. What is the cost of direct labor?

b. What is the labor content?

c. How much idle time does the worker at resource 3 have per unity?

d. What is the average labor utilization?

e. Assume the demand rate is 15 units per hour. What is the take time?

f. Assume the demand rate is 15 units per hour. What is the target manpower?

Reference no: EM132208853

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