Concept explainers
A
Interpretation: Find out the productivity of both the companies and determine the company with higher productivity.
Concept Introduction: The production contribution of the total labor is represented by Labor Productivity.
A
Answer to Problem 22P
Through the calculations, we can infer that the productivity of the company A is 2.08 miles per hour, and that of the company B is 2.4 miles per hour. Hence, we can conclude that the Company B is higher productive of the two.
Explanation of Solution
Given Information: The ratio that relates output with the combined set of inputs involved is called as Multifactor Productivity.
Productivity of the companyA can be calculated using the below formula:
Thus, the productivity of the labor can be calculated as 17 poles per hour.
Productivity of the company B can be calculated using the below formula:
Thus, the productivity of the labor can be calculated as 2.4 miles per hour.
By observing the above derived results, we can see that the company B is more productive than the company A.
B
Interpretation: Find out the productivity of both the companies and determine the company with higher productivity, with the new assumptions.
Concept Introduction: The production contribution of the total labor is represented by Labor Productivity.
B
Answer to Problem 22P
Through the calculations, we can see that the labor productivity of the company A is more than that of the company B.
Explanation of Solution
Productivity of the labor can be calculated using the below formula:
Thus, the total labor cost is $5,760.
With the derived labor cost for company A, Multifactor productivity can be computed,
Now, we shall look at the labor productivity of the company B:
With the derived labor cost for company B, Multifactor productivity can be computed,
Thus, the company A is more productive than the company B.
C
Interpretation: Find out the productivity of both the companies and determine the company with higher productivity, with the new assumptions.
Concept Introduction: The production contribution of the total labor is represented by Labor Productivity.
C
Answer to Problem 22P
Through the calculations, we can see that the labor productivity of the company B is more than that of the company A.
Explanation of Solution
Productivity of the labor can be calculated using the below formula:
Thus, the total labor cost is $13,440.
With the derived labor cost for company A, Multifactor productivity can be computed,
Now, we shall look at the labor productivity of the company B:
With the derived labor cost for company B, Multifactor productivity can be computed,
Thus, the company B is more productive than the company A.
D
Interpretation: Provide a conclusion with regard to the differences in the productivity with the changes in the labor costs.
Concept Introduction: The production contribution of the total labor is represented by Labor Productivity.
D
Answer to Problem 22P
From the point of view of person X, the deriving differ.
Explanation of Solution
In spite of the productivity stays higher for company B, the equipment and material costs are higher. On the other hand, when the labor cost is $15 per hour, Company A is more productive. At a labor cost of $35 per hour, company B is more productive.
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Chapter 2 Solutions
Practical Operations Management
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