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MGT530 - Week 1 - Homework Questions From End of Chapter 1

The document discusses homework questions from a logistics and operations management course. It includes questions about calculating labor productivity ratios for a laundry business with varying work crews and production levels over 5 weeks. It also includes questions about calculating the percentage reduction needed in materials, labor, or overhead costs to achieve a 10% productivity improvement for an electronics company producing CD players.

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139 views2 pages

MGT530 - Week 1 - Homework Questions From End of Chapter 1

The document discusses homework questions from a logistics and operations management course. It includes questions about calculating labor productivity ratios for a laundry business with varying work crews and production levels over 5 weeks. It also includes questions about calculating the percentage reduction needed in materials, labor, or overhead costs to achieve a 10% productivity improvement for an electronics company producing CD players.

Uploaded by

sam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MGT530 – Logistics and Operations

Week 1 – Homework Questions from End of Chapter

2. Suds and Duds Laundry

Suds and Dus Laundry washed and pressed the following number of dress shirts per
week.

a. Calculate the labor productivity ratio for each week.


Input Output Output/Input

Week Work Crew (Labor-hours) (Shirts) Ratio

1 Sud and Dud 24 68 ____ shirts/hour

2 Sud and Dud 46 130 ____ shirts/hour

3 Sud, Jud, and Dud 62 152 ____ shirts/hour

4 Sud, Jud, and Dud 51 125 ____ shirts/hour

5 Jud and Dud 45 131 ____ shirts/hour

b. Explain the labor productivity pattern exhibited by the data. (Talk about what is going
on in the different weeks and what may cause the difference. A one paragraph answer
should be enough.)

3. White Tiger Electronics

White Tiger Electronics produces CD players using an automated assembly line process. The
standard cost of CD players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The
sales price is $300 per unit. Use the formulas below to help solve and also answer question d.

A. To achieve a 10 percent multifactor productivity improvement by reducing materials costs


only, by what percentage must these costs be reduced?

b. To achieve a 10 percent multifactor productivity improvement by reducing labor costs only,


by what percentage must these costs be reduced?

c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs


only, by what percentage must these costs be reduced?
Value of Output: $_______
Value of Input: Labor + Materials + Overhead
Productivity

10% productivity improvement -> ___ x % increase (1.10) = ____


Given productivity = ___, and the value of output = ___ we solve for the cost of NEW
inputs:

Productivity

Input or $___ (Round to nearest dollar)

The cost of inputs must decrease by ($___ - $___) = $__


a. A $__ reduction in material costs is $__ / $__ = ____%
b. A $__ reduction in labor costs is $__ / $__ = ____%
c. A $__ reduction in overhead is $__ / $__ = ____%
d. Discuss the feasibility of reducing each of these individual costs in order to achieve the
10 percent multifactor productivity improvement.

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