U 36 + BUSI2113 Exercis... @ At : BUSI 2113 (Production and Operations Management) Exercise 1 (Due April 2611:00 p.m.) Students should submit their solutions in format to the Moodle platform by the due date. May I remind students that solutions with detailed working presented in clear, decent, formal, precise and concise manner, in simple but grammatically come English are required. Sketch diagrams whenever necessary Full marks will only be given to solutions with logical and adequate explanations No mark will be given to answers without any justifications or solution procedures Late submission policy applies. Question 1 In the Loans & Credits department of a TD Bank branch, there are 700 loan applications per week waiting to be processed. There are currently 8 employees (each works for 7 hours a day, 5 days a week) working in the department for processing the loan applications (a) What is the employee productivity (in applications/hour)? (b) Due to the current economic situation, the director of the department anticipates that there will be a significant increase in the number of loan applications. If there are 1960 applications per week and the director wishes to increase the employee productivity to 3.5 applications per hour, how many additional employee should be hired? Question 2 Vera operates a specialty cake shop and she can make and sell 15 specialty cakes per day. The sales price of each specialty cake is $65. Vera works 6 hours per day and she pays herself $20/hr. The material cost for each specialty cakes is $15 and the overhead cost per day is $25. (a) Calculate the daily multifactor productivity (b) Compute the percentage change on the multifactor productivity under cach of the following situation: (i) A $1 increase in material cost for each specialty cake. (ii) A 10% decrease in material cost for cach specialty cake. (ii) A 10% decrease in daily overhead cost. Question 3 The HandyShop, a small business selling handmade products, is currently selling 4 items, namely, tote bags, crochet baskets, bracelets, and necklaces. There are 2 staff working for the shop, cach works for 6 hours each day. Each day, the two staff can make and sell a total of 4 tote bags, 3 crochet baskets, 6 bracelets, and 10 necklaces. The selling price, unit materials cost and the overhead cost for each items are tabulated below: Tote Bags Bracelets Necklaces $25 Crochet Baskets $35 $6 $20 Unit selling price Unit material cost Overhead cost/day S22 $30 S4 $20 S3 $2 $15 SIO (a) Suppose each staff has an hourly wage of $17.25, compute the labour product (in Slabour-hour) and the multifactor productivity, respectively. (b) The shop is capable to accommodate two more staff and the shop owner is deciding whether to appoint two recently interviewed candidates, Ava and Bertha. Ava is an expert in making tote bags and crochet baskets. She can make and sell 10 tote bags and 8 crochet baskets in a 6-hour day. Ava asks for a wage of $30/hr. Bertha is an expert in making bracelets and necklaces. She can make and sell 12 bracelets and 14 necklaces in a 6-hour day. Bertha asks for a wage of $32.5/hr. In order to improve the multifactor productivity, what is the best decision on the appointment of Ava and/or Bertha? -END
