Question: QUESTION 3 ( 2 0 Marks ) The Coca - Cola Company operates several manufacturing plants in South Africa, where it produces a wide range

QUESTION 3(20 Marks)
The Coca-Cola Company operates several manufacturing plants in South Africa, where it produces a wide range of
beverages to meet the demands of the local market. At these manufacturing facilities, Coca-Cola produces various
beverage products, including carbonated soft drinks, juices, bottled water, energy drinks, and sports drinks. These
products are manufactured using state-of-the-art production technologies and adhere to stringent quality and safety
standards. In one of its plants in Bloemfontein, it needs to make 100,000 litres of grapetiser per month to meet demand.
Each month contains 20 working days, each of which allows for three (3)8-hour shifts. Within a close radius, the
organisation operates a Coke Zero processing unit which has 100,000 labor hours available for the quarter and currently
has a labor productivity of 5 gallons per 4,000 hours.
Using the provided information determine the following:
3.1 For the grapetiser processing plant, if a worker can produce 10 litres/hour, determine the number of
workers needed on each shift. Suppose each shift has 100 workers, what is the productivity of an individual
worker? Lastly, if material costs are R10/litre, capital costs are R100,000 and labor costs are R10/hour, what
is the multifactor productivity of this processing plant?
(14 Marks)
3.2 For the coke-zero processing unit, determine the amount of gallons that the processing plant can make
this quarter. If the multi-factor productivity was 1 gallon per R25000, how much should the organisation
spend this quarter in manufacturing Coke Zero gallons?
(6 Marks)

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