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retownes retownes
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5 years ago
An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts.
(a)   If a worker can produce 10 parts/hour, how many workers are needed on each shift?
(b)   If each shift has 100 workers, what is the productivity of an individual worker?
(c)   If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part (a)?
Textbook 

Operations Management


Edition: 10th
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kadajikadaji
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More solutions for this book are available here
(a)   100,000 parts × (1 hour / 10 parts) × (1 shift / 8 hours) × (1 worker/60 shifts) = 20.83 = 21 workers
(b)   100,000 parts / [(60 shifts/worker) × (100 workers) × (8 hours/shift)] = 2.08 parts/hour
(c)   100,000 parts / [($10/part) × (100,000 parts) + $100,000 + (21 workers) × (60 shifts/worker) × (8 hours/shift) × ($10/hour)] = .083 parts/$1

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