Operations Management

7.
unit of measurementEmployeesCustomers Processed
A436
B540
C860
D320
Hourly Wage footstep= $25
Overhead Rate = 1.0 times labor cost
satisfying Cost = $5 per customer


7a) Labor productivity = fruit/ Input
unit A: 36 customers/ (4workers*8hrs) = 1.125 = 1 customer
social unit B: 40 customers/ (5workers*8hrs) =1 = 1 customer
whole C: 60 customers/ (8workers*8hrs) =.938 =1 customer
social unit D: 20 customers/ (3workers*8hrs) =.833 =1 customer

Multifactor Productivity= Output/Labor + Materials + Overhead
Unit A: 36/ (4*8*25) + (5+36) + (4*8*25*1) = .020 = .020
Unit B: 40/ (5*8*25) + (5*40) + (5*8*25*1) =.018 = .018
Unit C: 60/ (8*8*25) + (5*60) + (8*8*25*1) =.017 = .017
Unit D: 20/ (3*8*25) + (5*20) + (3*8*25*1) =.015 = .015

7b) Labor Productivity= Output/ Input
Unit A: 37 customers/ (4workers*8hrs) = 1.156 = 1 customer
Unit B: 41 customers/ (5workers*8hrs) = 1.025 = 1 customer
Unit C: 61 customers/ (8workers*8hrs) = .953 = 1 customer
Unit D: 21 customers/ (3workers*8hrs) = .



875 = 1 customer

Multifactor Productivity= Output/Labor + Materials + Overhead
Unit A: 37/ (4*8*25) + (5+37) + (4*8*25*1) = .021 = .021
Unit B: 41/ (5*8*25) + (5*41) + (5*8*25*1) = .019 = .019
Unit C: 61/ (8*8*25) + (5*61) + (8*8*25*1) = .017 = .017
Unit D: 22/ (3*8*25) + (5*21) + (3*8*25*1) = .016 = .016

9)
3 employees
40 hours worked
$25 wage rate
3,000 Avg. lead week
5,000 List
4% Avg. family up
$70 Fee
$1,000 per week Material Cost
$9,000 per week Overhead Cost

MFP= (Possible leads) (No. of workers) (Fee) (Conversion Percentage)
histrion Cost + Material Cost + Overhead Cost

(3,000) (3) (70) (.04) ___-------
(3*40*25) + (1,000) + (9,000)
Multifactor Productivity = 1.938If you want to get a full essay, order it on our website: Ordercustompaper.com



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