Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
bartleby

Concept explainers

Question
100%
Book Icon
Chapter 1, Problem 8P

a)

Summary Introduction

To determine: The labor productivity per labor hour of Company LF.

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

a)

Expert Solution
Check Mark

Answer to Problem 8P

The labor productivity of Company LF is 2.5 tires per hour.

Explanation of Solution

Given information:

Company LF is manufacturing 1,000 tires per day with 400 labor hours per day.

Formulae to calculate labor productivity:

Labor productivity= Total tiers producedTotal Labor hours

Calculate labor productivity:

The labor productivity is calculated by dividing the total output by the total input.

Labor productivity=1,000tires400hours=2.5tiresperhour

Therefore, the labor productivity of Company LF is 2.5 tires per hour.

b)

Summary Introduction

To determine: Multifactor productivity of Company LF.

Introduction: Multifactor productivity is an evaluation of economic performance that compares the amount of products and services produced to the amount of combined input used to produce those products and services.

b)

Expert Solution
Check Mark

Answer to Problem 8P

The multifactor productivity of Company LF is 0.025tiers per dollar.

Explanation of Solution

Given information:

Company LFproduces 1,000 tiers per day with 400 labor hours at the cost of $12.50 per hour. Raw materials of 20,000 pounds per day were used at the cost of $1 per pound. Energy cost is $5,000 per day and capital cost is $10,000 per day.

Formula:

Multifactor productivity=Total goods produced[(Labor hours×Cost per hour)+(Raw materials used×Cost )+Energy cost+Capital cost]

Calculate multifactor productivity:

The multifactor productivity is calculated by dividing the total goods producedwith the total values of resources used to produce the total goods.

Multifactor productivity=Total goods produced[(Labor hours×Cost per hour)+(Raw materials used×Cost )+Energy cost+Capital cost]=1,000tires[(400 hours×$12.50perhour)+(20,000×$1per gallon)+$5,000+$10,000]=1,000tires$40,000=0.025tiresperdollar

Therefore, the multifactor productivity of Company LF is 0.025 tires per dollar.

c)

Summary Introduction

To determine: The percentage change in multifactor productivity if the company reduces the energy bill by $1,000 per day.

c)

Expert Solution
Check Mark

Answer to Problem 8P

The percentage change in multifactor productivity is 2.56%.

Explanation of Solution

First, calculate the change in multifactor productivity.

Given information:

The energy cost is reduced by $1,000 per day.

Formula:

Multifactorproductivity}=[Total goods produced(Labor hours×cost per hour)+(Raw materials×cost)+Energy+Capital](Initial multifactorproductivity)

The change in multifactor productivity is calculated by dividing the total goods producedwith the total values of resources used to produce the total goods. The initial multifactor productivity must be subtracted from the change in multifactor productivity value.

Multifactorproductivity}=[Total goods produced(Labor hours×cost per hour)+(Raw materials×cost)+Energy+Capital](Initial multifactorproductivity)=[1,000tires[(400 hours×$12.50)+(20,000×$1)+$4,000+$10,000]0.025]=1,000tires$39,0000.025

=0.025640.025=0.00064tires per dollar

Hence, the change in multifactor productivity is 0.00064 tires per dollar.

Calculate the percentage change in multifactor productivity:

Formula:

Percentage change=Change in multifactorproductivityIntital multifactorproductivity×100

Calculate percentage change:

The percentage change in productivity is calculated by dividing the change in productivity units with initial productivity.

Multifactor productivity=Initalmultifactor productivityChange in multifactor productivity value×100=0.000640.025×100=0.0256×100=2.56%

Therefore, the percentage change in productivity is 2.56%.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Major League Baseball's World Series is a maximum of seven games, with the winner being the first team to win four games. Assume that the Atlanta Braves and the Minnesota Twins are playing in the World Series and that the first two games are to be played in Atlanta, the next three games at the Twins' ballpark, and the last two games, if necessary, back in Atlanta. Taking into account the projected starting pitchers for each game and the home field advantage, suppose the probabilities of Atlanta winning each game are as follows. Game 1 2 3 4 5 6 7 Probability of Win 0.61 0.56 0.47 0.44 0.47 0.54 0.49 Construct a simulation model in which whether Atlanta wins or loses each game is a random variable. Use the model to answer the following questions. (Use at least 1,000 trials.) (a) What is the average number of games played regardless of winner? (Round your answer to one decimal place.) games (b) What is the probability that the Atlanta Braves win the World Series? (Round your answer to…
Model File Available: Download NBAGIMS.xlsx The Iowa Wolves are scheduled to play against the Maine Red Claws in an upcoming game in the National Basketball Association (NBA) G League. Because a player in the NBA G League is still developing his skills, the number of points he scores in a game can vary substantially. Develop a spreadsheet model that simulates the points scored by each team. Assume that each player's point production can be represented as an integer uniform variable with the ranges provided in the following table. (Use at least 1,000 trials.) Player Iowa Wolves Maine Red Claws 1 [5, 20] [6, 12] 2 [7, 20] [15, 20] 3 [5, 10] [10, 20] 4 [10, 40] [15, 30] 5 [7, 20] [6, 10] 6 [2, 10] [1, 20] 7 [2, 5] [1, 4] 8 [2,4] [2,4] (a) Consider the points scored by the Iowa Wolves team. (Round your answers to two decimal places.) What is the average of points scored? What is the standard deviation? What is the shape of the distribution? O uniform bell-shaped skewed left skewed right
The wedding date for a couple is quickly approaching, and the wedding planner must provide the caterer an estimate of how many people will attend the reception so that the appropriate quantity of food is prepared for the buffet. The following table contains information on the number of RSVP guests for the 145 invitations. Unfortunately, the number of guests does not always correspond to the number of RSVPed guests. Based on her experience, the wedding planner knows it is extremely rare for guests to attend a wedding if they notified that they will not be attending. Therefore, the wedding planner will assume that no one from these 50 invitations will attend. The wedding planner estimates that the each of the 25 guests planning to come solo has a 74% chance of attending alone, a 20% chance of not attending, and a 6% chance of bringing a companion. For each of the 60 RSVPs who plan to bring a companion, there is a 90% chance that they will attend with a companion, a 4% chance of attending…
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
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
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning