6 Management Sustainability and Supply Chain Man... not purcnase tme vienger sug

Question

6 Management Sustainability and Supply Chain Man... not purcnase tme vienger suggesta In rToDIemI 1.I, wnat wll tne productivity of the bakery be? What will be the percent increase or decrease? 1.15 In December, General Motors produced 6,600 cus- tomized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hours did the average laborer work that month? b) If productivity can be increased to 0.11 vans per labor- hour, how many hours would the average laborer work that month? EMENT ast year This year. Then determine the percent change in productivity for the monthly average last year versus the monthly average this year on a multifactor basis. Labor: $8 per hour Capital: 0.83% per month of investment

Explanation / Answer

1.15

Production in December = 6,600 vans

Labor productivity = 0.1 vans per labor-hours

So, labor-hours employed = Production / labor productivity = 6,600 / 0.10 = 66,000 lavor-hours

(a)

No. of workers = 300

So, average hours worked per month = 66000 / 300 = 220 hours

(b)

SImilarly, for the labor productivity being 0.11 vans per labor-hours,

Average hours worked per month = 6,600 / (300 x 0.11) = 200 hours

1.16

Output = 52 x $90 + 80 x $198 = $20,520

Input = 45 x 8 labor-hours = 360 labor-hours

Labor productivity = Otput / Input = 20,520 / 360 dollar per labor-hours = 57 dollars per labor hour

1.17

* Labor ($) = $8 x Labor (hours): $8 x 350 = $2,800

** Capital ($) = 0.83% x Capital Investment ($): 0.83% x $15,000 = $125

*** Energy ($) = $0.60 x Energy (BTU): $0.60 x 3000 = $1,800

**** (0.343 - 0.317) / 0.317 = 8.13%

Last Year This Year Prodution (dozens) 1500 1500 Labor (hours) 350 325 Capital investment ($) 15000 18000 Energy (BTU) 3000 2700 Last Year This Year % increase Prodution (dozens) 1500 1500 Labor ($) $2,800 * $2,600 Capital ($) $125 ** $149 Energy ($) $1,800 *** $1,620 Total cost of inputs $4,725 $4,369 Multifactor productivity 0.317 0.343 8.13% ****

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