Productivity

Questions:

1.13 Charles Lackey operates a bakery in Idaho Falls. Because of its excellent product and location, demand has increased by 25% in the last year. On far too many occasions, customers were have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor hour, how many workers will Lackey need to add? (Hint: each worker works 160 hours per month.)

1.14 Refer to problem 1.13 The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of $100 per month, but he will achieve the same output (an increase to 1,875) as the change in labor hours. Which is the better decision? Why?
a) show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to 800 hours)
b) show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month)
C) show the percent productivity change for labor and investment.

1.16 In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that month. 300 laborers were employed at the plant that month.
a) how many hours did the average laborer work that month?
b) if productivity can be increased to 0.11 vans per labor hour, how many hours would the average laborer work that month?