A standard work year is 2,080 hours at the Luther Mill and it takes about 2 hours to fill a customer order. The manager at the mill is always concerned about employee idle time, so he aims for a capacity cushion of two percent. Last year saw 15,000 customer orders at the mill and the manager has a new Mercedes in mind as a company car, so he hopes that there is an increase of 10% in customer orders for next year. How many workers will the manager need to have at the mill next year?
A) 10
B) 13
C) 16
D) 19

Question

Quizplus · Accepted Answer

First, we need to calculate the total hours needed to fill customer orders for next year:
15,000 customer orders * 1.1 (10% increase) * 2 hours per order = 33,000 hours

Next, we need to factor in the capacity cushion of two percent:
33,000 hours * 1.02 = 33,660 hours

Finally, we can calculate the number of workers needed based on the standard work year of 2,080 hours:
33,660 hours / 2,080 hours per worker = 16.16 workers

Since we can't have a fractional worker, we round up to the nearest whole number and get 16 workers needed at the mill next year. Therefore, the best choice is C) 16.

A Standard Work Year Is 2,080 Hours at the Luther