Imagine you have some workers and some handheld computers that you can use to ta

Question

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 100 items per hour. Two workers sharing a computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 200 items per hour. And four or more workers sharing a computer can together inventory fewer than 210 items per hour. Computers cost $125 each and you must pay each 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? $.

b. What if you assign two workers per computer? What is the cost of inventorying a single item? $.

c. What if you assign three workers per computer? $.

d. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?

Instructions: Enter your answer as a whole number.

     worker(s) per computer.

Explanation / Answer

a. Cost of inventorying single item = (Total cost of computer + Wage to worker) / Total inventory done by one worker = (125+30)/100 = $ 1.55

b. Cost of inventorying single item = (125 + 2X30)/150 = 185/150 = $ 1.23

c. Cost of inventorying single item = (125 + 3X30)/200 = 215/200 = $ 1.075

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.