Refer to Problems 1.13 and 1.14. If Marjatta Viitasalos utility costs remain constant at $500 per month,

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Refer to Problems 1.13 and 1.14. If Marjatta Viitasalo’s utility costs remain constant at $500 per month, labour at $8 per hour, and cost of ingredients at $0.35 per loaf, but Viitasalo does not purchase the blender suggested in Problem 1.14, what will the productivity of the bakery be? What will be the percent increase or decrease?

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Marjatta Viitasalo operates a bakery in Thunder Bay, Ontario. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. If the bakery makes 1500 loaves per month with a labour productivity of 2.344 loaves per labour-hour, how many workers will Viitasalo need to add?

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Operations Management Sustainability and Supply Chain Management

ISBN: 978-0133764345

2nd Canadian edition

Authors: Jay Heizer, Barry Render, Paul Griffin

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