Reducing number and severity of medical costs


Assignment:

The data processing centre at a Swiss tax centre has been troubled recently by the increasing incidence of repetitive strain injuries in the workplace. Health and safety consultants have recommended to management that they invest in upgrading computer desks and chairs at a cost of 500 000 Swiss francs (CHF). They advise that this would reduce the number and severity of medical costs by CHF 70 000 per year and that productivity losses and sick leaves could be reduced by a further CHF 80000 per year. The furniture has a life of eight years with zero scrap value. The city uses a AIARR of 9%. Should the centre purchase the furniture? Use a benefit-cost analysis.

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Reducing number and severity of medical costs
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