production and operation management
Chapter 2 Problems
5 A U.S. manufacturing company operating a subsidiary in an LDC (less developed country) shows the following results:
U.S
LDC
Sales (units)
100,000
20,000
Labor (hours)
20,000
15,000
Raw Materials (currency)
$20,000
FC 20,000
Capital Equipment (hours)
60,000
5,000
a. Calculate partial labor and productivity figures for the parent and the subsidiary. Do the result seem misleading?
b. Compute the multifactor productivity figures for labor and capital together. Are the results better?
c. Calculate raw material productivity figures (unit/$ where $1= FC 10). Explain why these figures might be greater in the subsidiary.
6 Various financial data for 2004 and 2005 follow. Calculate the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
2004
2005
Output:
Sales
$200,000
$220,000
Input:
Labor
30,000
40,000
Raw Materials
35,000
45,000
Energy
5,000
6,000
Capital
50,000
50,000
Other
2,000
3,000
1e A retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers (they work a 40-hour week). In April the store also had seven part-time workers at 10 hours per week, and in May the store had 9 part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity from April to May?
2e A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches.
The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburgers. Current employment is five full-time employees (who work a 40-hour week). If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is the productivity? What would its productivity have
5 A U.S. manufacturing company operating a subsidiary in an LDC (less developed country) shows the following results:
U.S
LDC
Sales (units)
100,000
20,000
Labor (hours)
20,000
15,000
Raw Materials (currency)
$20,000
FC 20,000
Capital Equipment (hours)
60,000
5,000
a. Calculate partial labor and productivity figures for the parent and the subsidiary. Do the result seem misleading?
b. Compute the multifactor productivity figures for labor and capital together. Are the results better?
c. Calculate raw material productivity figures (unit/$ where $1= FC 10). Explain why these figures might be greater in the subsidiary.
6 Various financial data for 2004 and 2005 follow. Calculate the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
2004
2005
Output:
Sales
$200,000
$220,000
Input:
Labor
30,000
40,000
Raw Materials
35,000
45,000
Energy
5,000
6,000
Capital
50,000
50,000
Other
2,000
3,000
1e A retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers (they work a 40-hour week). In April the store also had seven part-time workers at 10 hours per week, and in May the store had 9 part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity from April to May?
2e A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches.
The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburgers. Current employment is five full-time employees (who work a 40-hour week). If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is the productivity? What would its productivity have