Operations Management: Sustainability And Supply Chain Management, Global Edition
Operations Management: Sustainability And Supply Chain Management, Global Edition
12th Edition
ISBN: 9781292148632
Author: RENDER, Munson Heizer
Publisher: PEARSON
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Chapter 1, Problem 10P
Summary Introduction

To determine: The multifactor productivity of Munson Company.

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

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Please do not give solution in image formate thanku.  Munson Performance​ Auto, Inc., modifies 475 autos per year. The​ manager, Adam​ Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last​ year's performance as a benchmark for future comparison.  You have assembled the following data. Resource inputs​ were: labor,10,500 ​hours; 540 suspension and engine modification​ kits; and​ energy, 110,000 ​kilowatt-hours. Average labor cost last year was ​$20 per​ hour, kits cost ​$1,000 ​each, and energy costs were ​$4 per​ kilowatt-hour.
Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performanceas a benchmark for future comparison. You have assembled the following data. Resource inputs were labor, 10,000 hours; 500 suspension and engine modification kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $20 per hour, kits cost $1,000 each, and energy costs were $3 per kilowatt hour. What do you tell Mr. Munson?
Munson Performance Auto Inc., modifies 350 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year's performance as a benchmark for future comparison. You have assembled the following data. Resource inputs were: labor, 10,000 hours; 540 suspension and engine modification kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $30 per hour, kits cost $1,000 each, and energy costs were $4 per kilowatt-hour.  The overall performance at Munson Performance Auto, Inc=       autos/dollar of input (round your response to six decimal places).
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