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Answer to the question given in detail. A fast-food chain processes its daily customer orders in its 4 units as follows: 4 employees process 36
Answer to the question given in detail.
A fast-food chain processes its daily customer orders in its 4 units as follows: 4 employees process 36 customers in the 1st unit. Unit 2 has 5 employees who process 40 customers on an average. Unit 3 is the largest, with 8 employees and gets 60 customer orders processed on an average. The smallest of the units has 3 employees processing 20 orders. The labour rate is $30 every hour and the operations overhead is about 1.2 times the labour cost. The materials to process orders cost $10 per customer order. Assess the productivity of the units and report. The chain is considering a new standard operating procedure that could enable the employees to process another additional order per day. Make your recommendation based on the difference it could have on the productivity. You could assume an 8-hour working day for your calculationsStep by Step Solution
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