Productivity between prior to and after buying new equipment

Assignment Help Operation Management

Reference no: EM132286013

A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who produced an average of 85 carts per hour. Workers receive $13 per hour, and machine coast was $45 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $19 per hour while output increased by four carts per hour.

a) Compute the multifactor productivity (MFP) (labor plus equipment) under the After buying the new equipment. The MFP (carts/$) = (round to 4 decimal places).

b) Compute the % growth in productivity between the Prior to and after buying the new equipment. The growth in productivity = % (round to 2 decimal places)

Reference no: EM132286013

Questions Cloud

What budget procedure would allow him to do that : President Obama wanted to reduce the level of spending by the Drug Enforcement Administration during fiscal 2009. What budget procedure would allow him

What should the optimal restaurant capacity : What should the optimal restaurant capacity be if a marginal unit of restaurant capacity costs $12,500 and average profit margin per customer is $30?

Discuss topic in area of software design and architecture : Choose any topic in the area of Software Design and Architecture. Submit a short proposal as soon as possible )Your proposal should clearly show what you are.

Growing gap between all-star metro areas : New York's pull on tech companies also underscores what analysts say is a growing gap between all-star metro areas already rich with talented workers

Productivity between prior to and after buying new equipment : Compute the % growth in productivity between the Prior to and after buying the new equipment.

Examine elements within the criminal justice system : Examine elements within the criminal justice system that are based on or are residual processes from Beccaria's work, more specifically the concept.

Identify all the cultural and social norms : 1. Identify all the cultural and social norms in South Korea when it comes to gender, both in workplace and outside of work place.

Difference between gender identity and sexual orientation : Explain the difference between gender identity and sexual orientation, and why it is important professionally to understand this difference

What are some practical ways to help generate ideas : Read Ideas by Paul Graham: How to Get Startup Ideas - Want to start a startup? (By Y Combinator) and write your responses to the following questions.

User Account

All Pages