A) Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. B) Compute the multifactor productivity under each system. Use carts per dollar cost (laborplus equipment) as the measure. C) Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation.

A) Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. B) Compute the multifactor productivity under each system. Use carts per dollar cost (laborplus equipment) as the measure. C) Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 52P

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A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by four carts per hour. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labour content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 100 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 20 carts per hour. a. The labor productivity under the old system is Blank 1. Fill in the blank, read surrounding text. and the new system is Blank 2. Fill in the blank, read surrounding text. carts per worker per hour. b. Compute the total factor productivity under each of the systems. Old system Blank 3. Fill in the blank, read surrounding text.
A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 4 workers, who produced an average of 87 carts per hour. Workers receive $13 per hour, and machine coast was $32 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $18 per hour while output increased by four carts per hour. a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts/$) = .6949 (round to 4 decimal places). b) Compute the % growth in productivity between the Prior to and after buying the new equipment. The growth in productivity = 25.55 % (round to 2 decimal places)
A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 4 workers, who produced an average of 87 carts per hour. Workers receive $13 per hour, and machine coast was $32 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $18 per hour while output increased by four carts per hour.a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts/$) = ( ) (round to 4 decimal places).b) Compute the % growth in productivity between the Prior to and after buying the new equipment. The growth in productivity = ( ) % (round to 2 decimal places)
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