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takehomequiz1mgmt405spr14
MGMT 405 Operations and Production Management
SPRING 2013/14
TAKE-HOME QUİZ 1

The deadline is 11th November (Friday) 2014
Submission should be made to Mr. Komeil Shaeri (RD328)

Question:

Behiç the uncle operates a bakery in Famagusta. Because of its excellent product and excellent location, demand has increased by 25% in the last year. In the following year, customers have not been able to purchase the bread of their choice. Due to the old fashion facilities, the manager decided to change the old oven for producing more loaves of bread at one time. However, this new process would require additional manpower. Each worker works 20 days and 8 hours per month and the pay will be $ 8 per hour for employees. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Behiç the uncle need to add?

Behiç the uncle can also improve the yield by purchasing a new blender. This means an increase in his investment and this has a cost of $100 per month but the output will be same up to 1,875 as the change in labor-hours. Which is the better decision?

Show the productivity change in loaves per dollar with an increase in labor cost from 640 to 800 hours. Also, Show the new productivity in loaves per dollar with only an increase in investment as $ 100 per month more. In addition, show the percent productivity change for labor and investment. Finally, critically discuss the scenario in the case.

Notes:

1) You are advised to use word for the quizzes assigned.
2) If not, pages should be clearly written and numbered.
3) Your quiz will not be accepted without cover page.
4) Calculations with no explanation are not acceptable.

Good Luck

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