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Apatix Apatix
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7 years ago
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 $0.05 per checkout while bagging (material) costs are $0.10 per checkout with the old system and $0.15 for the new system. The new lanes also require $100/shift in capital costs. Assume that the lanes are always in use for 8 hours per day (1 shift) and that a worker makes $10/hour.
(a)   How many checkouts did the old system provide in a shift?
(b)   How many checkouts does the new system provide?
(c)   What is the multifactor productivity for each system?
Textbook 
Operations Management

Operations Management


Edition: 10th
Authors:
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kadajikadaji
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6 years ago
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