Question: D . I will answer general questions but will not give specifics. E . I hope everyone earns a 1 0 0 ! Good luck!

D. I will answer general questions but will not give specifics.
E. I hope everyone earns a 100! Good luck!
A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-
checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier and bagger on
each lane per shift. One cashier mans all 4 self-checkouts per shift (answering questions, checking
for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 1.25 minutes
(customers bag their own orders) while checkout with the old lanes took only 45 seconds. In
addition, the electricity costs for both setups are $0.06 per checkout while bagging (material) costs
are $0.12 per checkout with the old system and $0.20 for the new system. The new 4 self-checkout
lanes also requires a total of $25 in capital costs per day. Assume that the lanes are always in use for
16 hours per day (2 shift), for the old system the average revenue per checkout is $12 and $10 for
the new system, and a worker (cashier and bagger) makes $10? hour.
a. How many checkouts in total did the old system provide in a shift?
b. How many checkouts in total does the new system provide in a shift?
c. What is the unit-less multifactor productivity for each system (old or new)?
d. Which checkout system is more productive and what is the percent change in productivity for the
new system relative to the old system ((new-old)/old*100)?
 D. I will answer general questions but will not give specifics.

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