1.

Consider a glass shop process. In a table below we list the relevant resources and calculate the capacity, assuming a 24-hour day (artists never sleep!). Note that the annealing process for one unit takes 24 hours, and the annealing furnace can hold up to 15 units.

Resource	Slots in parallel	Activity time, hours	Capacity, units per day
Master	1	2.5	9.6
Annealing furnace	15	24	15
Assistant	1	1	24

Assume that the shop is operating at the full capacity (i.e., the demand rate for the products far exceeds the capacity). What is the average labor utilization?

2.What is the labor content in the glass shop process?

3. The manager considers hiring a new assistant who will be working on the same tasks as the first one, in parallel. How will this impact the glass shop profits? Comment separately on the effect on revenues and effect on costs.