Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 55​% in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only thing to be changed.​ (Productivity remains the​ same.) ​The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add? (hint: each worker works 160 hours per month).

Charles Lackey Bakery

The number of workers that Lackey will need to add is:

= 2.

Explanation:

a) Data and Calculations:

Increase in demand for bread = 55%

Units of bread produced per month = 1,500 loaves

Expected increase in production = 625 loaves

Total units of bread to be produced with the increase = 2,125 loaves

Labor productivity = 2.344 loaves per labor-hour

Labor hours by each worker per month = 160 hours

Total loaves produced by a worker = 375 (160 * 2.344) loaves

Number of workers currently engaged = 4 (1,500/375)

Number of workers needed to produce 2,325 (1,500 * 1.55) loaves with same labor productivity = 2,325/375 = 6.2

Number of workers that Lackey will add = 2 (6 - 4).

b) The labor productivity shows the output per labor-hour.  If a worker, who works for 160 hours a month, can produce 375 loaves of bread, it implies that 6 workers, working the same labor-hours each will be able to produce 2,325 approximately, which equals the expected total output caused by the 55% increase in demand from 1,500 loaves of bread per month.