Imagine you have some workers and some handheld computers that you can use to ta
ID: 1189822 • Letter: I
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 150 items per hour. Two workers sharing a computer can together inventory 200 items per hour. Three workers sharing a computer can together inventory 250 items 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 each worker $30 per hour.
a- What if you assign two workers per computer? What is the cost of inventorying a single item
b-What if you assign three workers per computer?
Explanation / Answer
a). if we assign two workers per computer, it willhelp them to inventory 200 items per hour.
Costs for inventory of 200 items by two workers = computer cost + per worker cost per hour *( number of workers)
= 125 + 30*2 = 185
Total cost for 200 items = 185
cost for 1 item = $185/200 = $0.925
b).
f we assign three workers per computer, it willhelp them to inventory 250 items per hour.
Costs for inventory of 250 items by three workers = computer cost + per worker cost per hour *( number of workers)
= 125 + 30*3 = $215
Total cost for 250 items = 215
cost for 1 item = $215/250 = $0.86
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