Question

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by

35%

in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only thing to be changed.​ (Productivity remains the​ same.) ​(Hint: Each worker works 160 hours per​ month.)

If the bakery currently makes

1,800

loaves per month with a labor productivity of

2.344

loaves per labor​ hour, then Lackey will need to add

nothing

​worker(s) to meet the increased demand

​(recall

that each worker works 160 hours per month and round your response up to the next whole​ number).

Answer 1

Given;

• Demand Increased by 35%
• Each worker works 160 Hrs per month
• Currently the bakery is making 1800 loaves per month
• Current productivity =2.344 loaves per labor Hr
• Productivity remains the same

Current Production = 1800

Therefore Current Productivity = Current Production / Total Labor hr = 2.344

Total labor Hr = 1800/2.344 =767.9

No of Workers Currently employed = 767.9/160=4.79 = 5

Now ,

Increased Demand = 1800 + 1800*35/100 = 2430

Since the productivity remains the same ,

Total labor Hrs Required for increased demand = 2430 /2.344 = 1036.68

Total No of Workers Required to meet the increased demand = 1036.68/160 =6.5 = 7 (Round Fig)

No of workers to be added = 7-5 =2