Collins Little Company has a staff of 4, each working 8 hours per day (for a payroll cost of $ 640 / day) and overhead expenses of $ 400 / day. Collins processes and closes on 8 files each day. The company recently purchased a computerized file search system that will allow the processing of 14 files per day. Although the staff, their works hours, and pay will be same, the overheads expenses are now $ 800 per day. Calculate and compare the labour and multifactor productivity in the old and new system.

Collins Little Company has a staff of 4, each working 8 hours per day (for a payroll cost of $ 640 / day) and overhead expenses of $ 400 / day. Collins processes and closes on 8 files each day. The company recently purchased a computerized file search system that will allow the processing of 14 files per day. Although the staff, their works hours, and pay will be same, the overheads expenses are now $ 800 per day. Calculate and compare the labour and multifactor productivity in the old and new system.

Name: Collins Little Company has a staff of 4, each working 8 hours per day
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Description: Collins Little Company has a staff of 4, each working 8 hours per day (for a payroll cost of $ 640 / day) and overhead expenses of $ 400 / day. Collins processes and closes on 8 files each day. The company recently purchased a computerized file searc

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of$20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titleseach day. They are considering purchasing a computerized title search system that will allowthe processing of 20 titles per day. With the new system, they could cut their staff to 2employees working the same hours at the same pay, but their overhead expenses woulddouble to $400 per day.a. Compute the labor productivity with the old system (in titles / worker hour).b. Compute the labor productivity with the new system (in titles / worker hour).c. Compute the multifactor productivity with the old system (in titles / dollar).d. Compute the multifactor productivity with the new system (in titles / dollar)
Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of $20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titles each day. They are considering purchasing a computerized title search system that will allow the processing of 20 titles per day. With the new system, they could cut their staff to 2 employees working the same hours at the same pay, but their overhead expenses would double to $400 per day. Compute the labor productivity with the old system (in titles / hour). Compute the labor productivity with the new system (in titles / hour). Compute the multifactor productivity with the old system (in titles / dollar). Compute the multifactor productivity with the new system (in titles / dollar).
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