Question

Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. As 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. 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).

Answer 1

Step-by-step explanation:

What is given:

Currently bakery makes 1500 loaves per month (output)

Labor productivity = 2.344

Demand has increased by 25% in the last year

Work hours = 160 hours per month

Labor productivity = Output/Labor hours

2.344 = 1500/ labor hours

Labor hours = 639.93

Number of workers required to produce 1500 loaves equals to 639.93/160 = 3.999

Demand has increased by 25%:

Total output = (1500*0.25) + 1500 = 375 + 1500 = 1875 (amount neede to meet the demand)

Number of labor hours needed to meet the demand = 1875/2.344=799.92hours

Workers required to meet the demand = 799.92/160 = 5

So, lackey needs to add 1 more employee (5-3.999)