Five workers are in a telephone-order business cell for processing customer orders. The tele- phone tasks (fraction time) include taking product orders (75%); logging customer-order fol- lowing up, complaints, and feedback (10%); and providing on-line product inquiry assistance (15%). The nontelephone tasks include invoicing and billing orders (35%), order shipping preparation (25%), and inventory updating and maintenance (40%). The five workers split their time as follows between telephone and nontelephone tasks: two (100%/0%), one (50%/50%), and two (10%/90%). Assume a 2000-hour work-year and a rate of $15.00 per hour for salary and benefits. Calculate the annual business cost per item. Each year, there are 12,000 product orders, 2000 customer complaints/feedback, 1500 on-line product inquiries, 10,000 orders, and 10,000 inventory updates.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Five workers are in a telephone-order business cell for processing customer orders. The tele-
phone tasks (fraction time) include taking product orders (75%); logging customer-order fol-
lowing up, complaints, and feedback (10%); and providing on-line product inquiry assistance
(15%). The nontelephone tasks include invoicing and billing orders (35%), order shipping
preparation (25%), and inventory updating and maintenance (40%). The five workers split their
time as follows between telephone and nontelephone tasks: two (100%/0%), one (50%/50%),
and two (10%190%). Assume a 2000-hour work-year and a rate of $15.00 per hour for salary
and benefits. Calculate the annual business cost per item. Each year, there are 12,000 product
orders, 2000 customer complaints/feedback, 1500 on-line product inquiries, 10,000 orders, and
10,000 inventory updates.
Transcribed Image Text:Five workers are in a telephone-order business cell for processing customer orders. The tele- phone tasks (fraction time) include taking product orders (75%); logging customer-order fol- lowing up, complaints, and feedback (10%); and providing on-line product inquiry assistance (15%). The nontelephone tasks include invoicing and billing orders (35%), order shipping preparation (25%), and inventory updating and maintenance (40%). The five workers split their time as follows between telephone and nontelephone tasks: two (100%/0%), one (50%/50%), and two (10%190%). Assume a 2000-hour work-year and a rate of $15.00 per hour for salary and benefits. Calculate the annual business cost per item. Each year, there are 12,000 product orders, 2000 customer complaints/feedback, 1500 on-line product inquiries, 10,000 orders, and 10,000 inventory updates.
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