Solution to Problems: Chapter 1, Operations and Productivity
Title: Solution to Problems: Chapter 1, Operations and Productivity
Category: /Business & Economy
Details: Words: 795 | Pages: 3 (approximately 235 words/page)
Solution to Problems: Chapter 1, Operations and Productivity
Category: /Business & Economy
Details: Words: 795 | Pages: 3 (approximately 235 words/page)
Solution to Problems: Chapter 1, Operations and Productivity
Problem 1:
Mance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours.
What will be
showed first 75 words of 795 total
You are viewing only a small portion of the paper.
Please login or register to access the full copy.
Please login or register to access the full copy.
showed last 75 words of 795 total
go, using the new paint, before the productivity drops to the current level of 0.24. In mathematical terms we make the material cost a variable (X), set the new multifactor productivity value to the current level, 0.24, and solve for X.
360/(($12x10) + 360 $(X) + $20 + $4) = 0.24
360 = 0.24($120 + 360$(X) + $20 + $4)
360 = $28.8 + 86.4$(X) + $4.8 + $.96
325.44 = 86.4$(X)
$(X)= 325.44/86.4 = $3.7666 @ $3.77
It follows then that the new paint could raise Materials cost by no more than approximately $0.27 (the difference between $3.77 and $3.50) before Ms. French would experience a decrease in multifactor productivity.