Question: C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one

C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows:

Activity

Processing time per customer

Wage rate ($ per hour)

Greet customer

2 seconds 5

Take order

30 seconds 5

Process order

60 seconds 15

Deliver order

5 seconds 8

Assume demand is unlimited. Which of the following conclusions can be drawn?

Adding one employee at a nonbottleneck activity will cause a larger decrease in the cost of direct labor than adding one employee at the bottleneck activity.

Adding two employees at the bottleneck activity will not increase the process capacity that was created by adding one employee.

Adding two employees at the bottleneck activity is the minimum change in manpower necessary to increase process capacity.

Adding two employees at the bottleneck activity will increase average labor utilization more than adding one employee.

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