Question

A standard work year is 2080 hours at the Luther Mill and it takes about 2 hours to fill a customer order. The manager at the mill is always concerned about employee idle time, so he aims for a capacity cushion of two percent. Last year saw 15,000 customer orders at the mill and the manager has a new Mercedes in mind as a company car, so he hopes that there is an increase of 10% in customer orders for next year. How many workers will the manager need to have at the mill next year

Answer 1

16 workers

Step-by-step explanation:

current demand = 15,000 customers x 2 hours per customer = 30,000 hours

we add the 2% cushion = 30,000 x 1.02 = 30,600 hours

if sales increase by 10% next year, next year's demand = 30,600 x 1.1 = 33,660 hours

33,660 hours / 2,080 hours per employee = 16.18 employees, which we should round to 16