In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item? Book Operations Management: Sustainability and Supply Chain Management Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New York, NY: Pearson Higher Education.

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...
icon
Related questions
Question
None
Problem #8.1
In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10
laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each
making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to
produce the item?
Book
Operations Management: Sustainability and Supply Chain Management
Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New
York, NY: Pearson Higher Education.
Transcribed Image Text:Problem #8.1 In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item? Book Operations Management: Sustainability and Supply Chain Management Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New York, NY: Pearson Higher Education.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.