Factory Shift Work Capacity
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1. Should a factory work second shift with wages as 1.5 times the day rate or expand the first shift factory capacity. Briefly explain your answer.
2. Your company needs to expand its manufacturing capacity. Where do you get the money to expand the factory? Explain your answer.
3. Your sales are low and you need additional funding at the end of the year. Where do you get this additional funding? Explain your answer.
4. Your company sells some excess capacity. What do you do with the money from the selling of the excess capacity? Explain your answer.
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Solution Summary
The expert determines if factory workers second shift wages be 1.5 times the day. The additional funding is determined.
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1. Should a factory work second shift with wages as 1.5 times the day rate or expand the first shift factory capacity. Briefly explain your answer.
This would require an analysis of the cost involved in expanding the day shift capacity. Comparing that to the 50% higher cost of wages for the evening shift would give you a basic idea of which is best. Other things to consider:
? Are there enough employees available to work second shift?
? Are utility rates cheaper on evenings?
? How long do you anticipate the need to increased capacity? If it is a temporary issue, ...
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