Discuss the below in detail:
Q: C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows:
|
Activity
|
Processing time per customer
|
Wage rate
($ per hour) |
|
Greet customer
|
2 seconds |
5 |
|
Take order
|
30 seconds |
5 |
|
Process order
|
60 seconds |
15 |
|
Deliver order
|
5 seconds |
8 |
Assume demand is unlimited. If two additional employees are added to the current bottleneck activity, what will be the cost of direct labor in $ per customer?