A company that makes a product recently purchased some new equipment that reduces the labor content of the jobs needed to produce the product. Prior to buying the new equipment, the company used six workers, who produced an average of 90 units per hour. Workers receive P35 per hour and machine cost was P2,000 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by P500 per hour while output increased by four units per hour. Compute the multifactor productivity under each system. Use units per peso cost (labor plus equipment) as the measure.
A company that makes a product recently purchased some new equipment that reduces the labor content of the jobs needed to produce the product. Prior to buying the new equipment, the company used six workers, who produced an average of 90 units per hour. Workers receive P35 per hour and machine cost was P2,000 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by P500 per hour while output increased by four units per hour. Compute the multifactor productivity under each system. Use units per peso cost (labor plus equipment) as the measure.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.5: Analytic Steady-state Queueing Models
Problem 30P
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A company that makes a product recently purchased some new equipment that reduces the labor content of the jobs needed to produce the product. Prior to buying the new equipment, the company used six workers, who produced an average of 90 units per hour. Workers receive P35 per hour and machine cost was P2,000 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by P500 per hour while output increased by four units per hour.
Compute the multifactor productivity under each system. Use units per peso cost (labor plus equipment) as the measure.
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