BUS ADM 370 Introduction to Supply Chain Management Homework 2 (25 points) For a
ID: 2641597 • Letter: B
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BUS ADM 370 Introduction to Supply Chain Management Homework 2 (25 points) For all the problems, to receive full you have to show your complete and accurate work. If you only provide the final answers your you not be assigned a score (or you miss the opportunity of receiving partial credi). All homework is to be turned in on time through D2L Problem 1: Productivity and Productivity Growth (10 points) McDonald's hires 3 cashiers, each working an 8 hour shift, 3 days per week. cashier makes S10 per hour. The 3 cashiers Each working together take a combined 360 orders per8 hour shift. a) what is the labor productivity (in orders per labor hour) for McDonald's? (2 points) b) what is the capital productivity (in orders per labor dollar) for McDonald s? (2points) For parts c and d, McDonald's is considering sending the 3 new cashiers to a ning class. If all 3 cashiers complete the training class, they will be able to take a combined 4so orders per 8hour sh ft. c) What would be the new labor pr d) what would be the labor productivi growth if the cashiers attend the training class? (3points) Problem 2: Breakeven, Total cost and Expected value (9 points) Your company plans to release its first new product on July 1 this year. The manufacturing be will outsourced, but your company will be required to provide the molds for the product at a fixed cost of before manufacturing can begin. The molds are expected to last one month before they wear out and new molds to be purchased. The manufacturer will charge ssowunit made which you will sell to your customers for $17s each. Marketing has provided the following demand forecast for July. Demand Level July Units sold Probability DE 500,000 $120 Low Demand 425 Medium Demand 750 High Demand 1,600 a) How many units does your company need to sell in July to break even? (3 points) c) What is the expected value of the total cost in July? (3points) 21.50 t 315 tzzo fo22.50Explanation / Answer
a) Total Hours for 3 Cashiers each working for 8 Hours Shift: 3 x 8 = 24 Hours
Order Taken = 360
Labor Productivity= 360 / 24 = 15 Order Per hour
b) Total Payment for one Hour = $10
Labor Productivity in order per Labor Dollar = 15 / 10 = 1.5 Order Per dollar
c) New Labor Productivity = 450 / 24 = 18.75 Order per Labor Hour
d) Growth in Labor Producitvity= 3.75 / 15 = 25%
Problem 2 )
a) BEP = Fixed Cost / Conrtibution Per Unit
July BEP = 90,000 / 125 (175 - 50) = 720 Units
b) Variable Cost Per Unit = $50
Total Variable Cost at High Demand = 1,600 x 50 = $80,000
Add: Fixed Cost = $90,000
Total Cost = $170,000
c) Expected Value of the Total Cost:
Expected Sales = (425 x .30) + (750 x .50) + (1,600 x .20) = 822.50
Total Cost = 822.50 x 50 = $41,125 + 90,000 = $131,125
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