By finding the appropriate productivity indices, answer the following questions:   Which store better utilizes the physical space?   Which store makes a better use of the labor resource?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. The Operations Marketing manager of a small chain of Kayak stores, was given the following data from two of the locations: 

 

Data

Jacksonville

Orlando

Weekly Sales

$9,500

$15,500

Total customers served

2,250

6,175

Total labor hours worked

840

735

Total square feet of operation

3,275

2,650

 

By finding the appropriate productivity indices, answer the following questions:

 

  1. Which store better utilizes the physical space?

 

  1. Which store makes a better use of the labor resource?
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