Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 1, Problem 16P
Summary Introduction

To determine: The labor productivity for Susan Williams Flagstaff’s job.

Introduction: Labor productivity is a valuation of the economic growth in a nation. Labor production measures the amount of products produced within an hour. Labor productivity, especially, evaluates the amount of real gross domestic product (GDP) produced by a labor hour.

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Burger Doodle is a fast-food restaurant that processes an average of 700 food orders each day. The average cost of each order is $6.05. Four percent of the orders are incorrect, and only 8% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out.
Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had four nonconformances, another had eight, another had one, and another had five nonconformance. a. What was the proportion nonconforming for each batch? Round your answers to two decimal places. The proportion nonconforming for the first batch: The proportion nonconforming for the second batch: The proportion nonconforming for the third batch: The proportion nonconforming for the fourth batch: b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places. Total nonconformances per unit for all batches:
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