| Save & Exit | | Submit Question 2 (of 11) 2. Imagine you have some workers and
ID: 1109730 • Letter: #
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| Save & Exit | | Submit Question 2 (of 11) 2. Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 150 items per hour. Two workers sharing a computer can together inventory 200 tems per hour. Three workers sharing a computer can together inventory 250 tems per hour And four or more workers sharing a computer can together inventory fewer than 260 items per hour. Computers cost $125 each and you must pay oach worker $30 per hour. Instructions: Round your answers to 2 decimal places a. If you assign one worker per computer, what is the cost of inventorying a single item? S b. What if you assign two workers per computer? What is the cost of inventorying a single item?s c. What if you assign three workers per computer? $ d. How many workers per computer should you assign #you wish to minimize the cost of inventorying a single item? Instructions: Enter your answer as a whole number. workeris) per computer 8 8 0Explanation / Answer
(a) With 1 worker per computer,
Total cost ($) = 125 + (30 x 1) = 125 + 30 = 155
Cost of inventorying 1 item = Total cost / Number of items = $155 / 150 = $1.03
(b) With 2 workers per computer,
Total cost ($) = 125 + (30 x 2) = 125 + 60 = 185
Cost of inventorying 1 item = Total cost / Number of items = $185 / 200 = $0.93
(c) With 3 workers per computer,
Total cost ($) = 125 + (30 x 3) = 125 + 90 = 215
Cost of inventorying 1 item = Total cost / Number of items = $215 / 250 = $0.86
(d) With 4 workers per computer,
Total cost ($) = 125 + (30 x 4) = 125 + 120 = 245
Cost of inventorying 1 item = Total cost / Number of items = $245 / 260 = $0.94
Therefore, if number of workers is 4 or higher, Cost of inventorying 1 item will start to increase.
Number of workers for minimum cost of inventorying 1 item = 3
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