Mat 540 Week 2
Operations management
Week 1
Chapter 1: Competing with Operations
Page 27, question 2: Suds and Duds Laundry
A.
Week | Hours(input) | Shirts(output) | Ratio | 1 | 24 | 68 | 2.83 Shirts/hour | 2 | 46 | 130 | 2.83 Shirts/hour | 3 | 62 | 152 | 2.45 Shirts/hour | 4 | 51 | 125 | 2.45 Shirts/hour | 5 | 45 | 131 | 2.91 Shirts/hour |
B. The output difference isn’t large between the input and output ratio. It seems as if producitivity may decline if there were more people working. If Suds and Dud has more than 2 or 3 workers on the amount of work per employee will decrease and there will be more room to be less productive. The laundry company may also not be able to handle the amount of business and have an overflow of work and not enough resources to handle. …show more content…
Productivity = Output/input= $300/X=2.2
Input = $136
The cost of inputs = $150-136 = $14 A. $14 reduction in material costs = $14/$70 = 20.0% B. $14 reduction in labor costs= $14/$30 = 46.7% C. $14 reduction in overhead is $14/ $50 = 28.0%
Page 28, question 5: Alyssa's Custom Cakes A. 5 Birthday cakes @ $50 a cake = $250
2 Wedding cakes @150 a cake = $300
3 Specialty cakes @$100 a cake= $300
Alyssa’s has a monthly revenue of $850.
We are given the Multifactor productivity ratio of
Week 1
Chapter 1: Competing with Operations
Page 27, question 2: Suds and Duds Laundry
A.
Week | Hours(input) | Shirts(output) | Ratio | 1 | 24 | 68 | 2.83 Shirts/hour | 2 | 46 | 130 | 2.83 Shirts/hour | 3 | 62 | 152 | 2.45 Shirts/hour | 4 | 51 | 125 | 2.45 Shirts/hour | 5 | 45 | 131 | 2.91 Shirts/hour |
B. The output difference isn’t large between the input and output ratio. It seems as if producitivity may decline if there were more people working. If Suds and Dud has more than 2 or 3 workers on the amount of work per employee will decrease and there will be more room to be less productive. The laundry company may also not be able to handle the amount of business and have an overflow of work and not enough resources to handle. …show more content…
Productivity = Output/input= $300/X=2.2
Input = $136
The cost of inputs = $150-136 = $14 A. $14 reduction in material costs = $14/$70 = 20.0% B. $14 reduction in labor costs= $14/$30 = 46.7% C. $14 reduction in overhead is $14/ $50 = 28.0%
Page 28, question 5: Alyssa's Custom Cakes A. 5 Birthday cakes @ $50 a cake = $250
2 Wedding cakes @150 a cake = $300
3 Specialty cakes @$100 a cake= $300
Alyssa’s has a monthly revenue of $850.
We are given the Multifactor productivity ratio of