Answer:
a. $1.03
b. $0.93
c. 0.98
d. 2 workers
Step-by-step explanation:
a. Given that:
- 1 computer : 1 worker : inventory 150 items per hour
- 1 computer : 2 workers : inventory 200 items per hour
- 1 computer : 3 workers : inventory 220 items per hour
- 1 computer : 4+ workers : fewer than 235 items per hour
- Cost: $100 per computer ; $25 per worker
The fixed production factor in the warehouse is the computer used:
-One computer used, but the number of users is varied to inventory a specified number of items.
-The variable production factor is the number of workers assigned per one computer.
#The cost of inventorying a single item by one worker is:
Hence, the cost of inventorying a single item is $1.03
b. Using the information provided above, the cost of inventorying a single item when two workers are assigned is :
Hence, the cost of inventorying a single item is $0.93
c.Using the information provided above, the cost of inventorying a single item when three workers are assigned is :
Hence, the cost of inventorying a single item is $0.98
d. To determine the most cost-effective job assignment, we calculate the cost of 4+ workers.
Take any number less than 235(say 234) as the inventory units:
From our calculations, it's clear that two workers per computer costs the least amount($0.93) per unit item. Hence, it is best to assign two workers per computer.
