Omar Industries maintains production facilities in several lo-cations around the globe. Average monthly cost data and out-put levels are as follows. a. Calculate the labor productivity of each facility.b. Calculate the multifactor productivity of each facility.c. If Omar needed to close one of the plants, which onewould you choose? Units (in 000s) Cincinnati Frankfurt Guadalajara BeijingFinished goods 10,000 12,000 5,000 8,000Work-in-process 1,000 2,200 3,000 6,000 Costs (in 000s) Cincinnati Frankfurt Guadalajara BeijingLabor costs $3,500 $4,200 $2,500 $800Material costs $3,500 $3,000 $2,000 $2,500Energy costs $1,000 $1,500 $1,200 $800Transportation costs $250 $2,500 $2,000 $5,000Overhead costs $1,200 $3,000 $2,500 $500
Omar Industries maintains production facilities in several lo-
cations around the globe. Average monthly cost data and out-
put levels are as follows.
a. Calculate the labor productivity of each facility.
b. Calculate the multifactor productivity of each facility.
c. If Omar needed to close one of the plants, which one
would you choose?
Units (in 000s) Cincinnati Frankfurt Guadalajara Beijing
Finished goods 10,000 12,000 5,000 8,000
Work-in-process 1,000 2,200 3,000 6,000
Costs (in 000s) Cincinnati Frankfurt Guadalajara Beijing
Labor costs $3,500 $4,200 $2,500 $800
Material costs $3,500 $3,000 $2,000 $2,500
Energy costs $1,000 $1,500 $1,200 $800
Transportation costs $250 $2,500 $2,000 $5,000
Overhead costs $1,200 $3,000 $2,500 $500
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