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In: Accounting

You are in charge of the department that receives the product in to the building and...

You are in charge of the department that receives the product in to the building and stows it to the bin where it is accessible by the department. you have two options on how to receive and stow the product. In the first option, you receive the product at 250 units per labor hour and stow it at 100 units per labor hour. You must receive it and stow it for the unit to count for production. This process results in 1% of the units stowed being incorrect. You can find and fix these errors at a rate of 20 units for labor hour with what you believe is almost 100% accuracy. In the second option, you receive and stow the product in one step vs. two. The rate for this process is 80 units per labor hours for receive and stow. This process results in 1.5% of the units being stowed being incorrect. You can find and fix these errors at a rate of 20 units per hour with what you believe is almost 100% accuracy. 1. Which option would you select to process today's units and why? 2. Does your answer change if you are told you must fully process 100,000 units today? If yes, why? 3. Does your answer change if you are told that you have 15 associates today and you must fully produce the maximum amount of units possible? If yes, why?

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