Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. there are diminishing returns to taking inventory. if one worker uses one computer, he can inventory 150 items per hour. two workers sharing a computer can together inventory 200 items per hour. three workers sharing a computer can together inventory 250 items per hour. and four or more workers sharing a computer can together inventory 260 items per hour. computers cost $100 each and you must pay each worker $25 per hour.

if you assign one worker per computer, what is the cost of inventorying a single item?

If we assign a computer worker the unit cost for inventing an item is $ 0.83

Explanation:

Computer costs $100

Worker charges $ 25 an hour.

If a worker can inventory 150 items in one hour then the unit cost would be:

Computer:  $ 100/150 items = $ 0.67

Worker salary $ 25 per hour.

$ 25/150 items = U$ 0.17

Total unit cost = $ 0.83

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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