Question: A production facility with 250 work days in a year makes brooms. If there were 10 people total working 8 hours a day making brooms

A production facility with 250 work days in a year makes brooms. If there were 10 people total working 8 hours a day making brooms of both configurations, would the facility be able to make their annual requirements? Here is the data:

Deluxe broom

* Demand = 152k annually

* .03 hours labor each

* $3.80 material

Standard broom

* Demand = 1052k annually

* .01 hours labor each

* $2.20 material

a) Yes but would have a productivity factor of 75.4%

b) Yes but would have a productivity factor of 65.3%

c) No. They would lack 1000 hours to complete the annual requirement

d) No because of risk potential of when demand hits (seasonality)

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