Concept explainers
(a)
Interpretation: The number of administration clerks that should be hired is to be calculated.
Concept Introduction:
It is very necessary to maintain the capacity at desired levels to keep a demand supply match.
(b)
Interpretation: The current labor utilization of the coders are to be calculated when two coding specialists are currently on duty.
Concept Introduction:
The averagelaborutilizationiscalculated by dividing the totallaborcontent by the sum of the total idle timeand the labor content.
(c)
Interpretation: The total process capacity in units per hour for the five stage process is to be calculated.
Concept Introduction:
The process output is equal to minimum capacity of stages A, B, C, D and E.
The formula to calculate the capacity is given by,
(d)
Interpretation: The position of any bottleneck exists, and recommendation needed to improve this process is to be determined.
Concept Introduction:
Abottleneckis regarded as a congestion point in a production system that arises when the workloads reach too rapidly for the production process to handle.
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