Operations Supply Chain

Multiple factor productivity work
Problem 1: Wellgoods Kiosks
Factor

Cashier checkout lanes

Self-checkout (by Bizpro)

Number

3

8

Managed by

1 cashier and 1 helper

1 supervisor for each. Total 8 supervisors

Time for one checkout

50 seconds

130 seconds

Repair and maintenance

5.5 cents for each checkout

7 cents per checkout

Additional capital

0

$65 per 8 hour shift

Theft

none

43 cents loss per checkout

Hours in use

16 hours (2 -8 hour shift)

16 hours (2 -8 hour shift)

Payment

Cashier - $15 per hour x3
Helper - $13 per hour x3

1 supervisor - $18 x8

1 How many checkouts per day are possible in case of cashier checkout option and in case of self-checkout option?
Cashier check out.

Self-checkout

* 1 check out takes 50 seconds
* Total duration in a day – 16 hours
* Total possible checkouts
* 1 checkout – 50secs
* ? checkouts – 16hours x60 minutes x 60 seconds
Therefore:
16 x 60 x 60 seconds x 1 checkout / 50 seconds
= 1,152 possible checkouts in a day

* 1 check out takes 130 seconds
* Total duration in a day – 16 hours
* Total possible checkouts
* 1 checkout – 130secs
* ? checkouts – 16 hours x60 minutes x 60 seconds
Therefore:
16 x 60 x 60 seconds x 1 checkout / 130 seconds
= 443 possible check out

2 Calculate multifactor productivity for both options.
Cashier checkout

Self-checkout

Multifactor productivity = Output/ (labor + energy + capital + miscellaneous)
Output = 1,152
The inputs: Labor; cashiers $15 x 3 = $45 x 16 hour shift = $720
Helpers: $13 x 3 = $39 x 16 hours shift = $624
Total labor = $1344
Repair and maintenance = $0.55 per check out x 1152 check outs = $633.6
Multifactor productivity = 1152 check outs/ ($1344+$633.6)
= 0.5825 checkouts/dollar

Multifactor productivity = Output/ (labor + energy + capital + miscellaneous)
Output = 443
Inputs: labor supervisor; $18 x 8 checkouts 16 hour shift
Total labor = $2304
Repair and maintenance = $0.70x 443...