The average wage of warehouse workers is $20 per hour.
The work crew is 6 full time employees, each averaging 2,000 hours per year.
Required:
Listed below are sub activities (receiving products) related to the warehousing activities of Rocket Brothers, a local supermarket chain:
(a) Consider the sub activities listed above. Based on your judgment, rate each of the activities on a value-added scale from 1 to 5, with 5 being the most highly valued from an external customer's perspective.
(b) What percentage of the cost is being spent on non-value-added activities?
(c) What recommendations do you have for company management?
Correct Answer:
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(a)
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