Question: Widgets are made in a THREE step process. The first step has ONE worker and takes 3 minutes per widget. The second step has FOUR
Widgets are made in a THREE step process. The first step has ONE worker and takes 3 minutes per widget. The second step has FOUR workers
and takes 20 minutes per widget. The last step has TWO workers and takes 6 minutes per widget. Assume unlimited demand. Each worker
makes $30 per hour.
What is the process capacity per hour? [2]
Which step is the bottleneck? [2]
What is the utilization of step 1 (You can leave your answer as a fraction)? [2]
What is the labor content per unit? [2]
What is the average labor utilization (You can leave your answer as a fraction)? [3]
What is the cost of direct labor per widget (You can leave your answer as a fraction)? [3]
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
