A standard work year is 2,000 hours at the Luther Mill and it takes about an hour and a half 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 John Deere in mind as a company car, so he hopes that there is an increase of 15% 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 required to fill all customer orders this year:
15,000 orders x 1.5 hours per order = 22,500 hours
To find the capacity required next year, we need to add a 2% cushion to the total hours required:
22,500 hours x 1.02 = 22,950 hours
Next, we need to account for the 15% increase in customer orders:
22,950 hours / 2,000 hours per worker / (1 + 0.15) = 12.565 workers
We need to round up to the nearest whole number, so the manager will need 13 workers next year. Therefore, the correct answer is B) 13.

A Standard Work Year Is 2,000 Hours at the Luther