QUESTION 2 (20 Marks) The Operations Manager of Boxer Super Stores has given you this information and would require you to address some of his questions. Boxer Superstores 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. One cashier mans all 4 self-checkouts (answering questions, checking for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 2 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 R0.05 per checkout while bagging (material) costs are R0.10 per checkout with the old system and R0.15 for the new system. The new lanes also require R100/shift in capital costs. Assume that the lanes are always in use for 8 hours per day (1 shift) and that a worker makes R10/hour. 2.1 How many checkouts did the old system provide in a shift? (5 marks) 2.2 How many checkouts does the new system provide? (5 marks) 2.3 What is the multifactor productivity for each system?

2.1 How many checkouts did the old system provide in a shift? (5 marks)

2.2 How many checkouts does the new system provide? (5 marks)

2.3 What is the multifactor productivity for each system?