For the previous month, the Bichsel Lounge served 1,500 customers with very few complaints. Their labor cost

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For the previous month, the Bichsel Lounge served 1,500 customers with very few complaints. Their labor cost was $3,000; material cost was $800; energy cost was $200; and building lease cost was $1,500. They were open 26 days during the month, and the lounge has 20 seats. They are open six hours per day, and the average customer stay is one hour.
 

a. Calculate the single-factor productivities and the overall multiple-factor productivity. How could they improve the productivity?

b. Calculate the monthly capacity and the capacity utilization.

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Principles of Supply Chain Management A Balanced Approach

ISBN: 978-1337406499

5th edition

Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong

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