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BORRAS - Problem Solving No. 1

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Josh Gabriel Borras
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14 views1 page

BORRAS - Problem Solving No. 1

Uploaded by

Josh Gabriel Borras
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Josh Gabriel Borras DSIOPMA

Problem Solving 1

Problem 1: Computing Productivity


A company that processes fruits and vegetables is able to produce 400 cases of canned peaches in ½
hour with 4 workers. What is the labor productivity?

Labor hours = 4 (workers) x ½ hour = 2 hours


Labor Productivity = 400/2 = 200 cases per hour

Problem 2: Computing Multifactor Probability


A wrapping-paper company produced 2,000 rolls of paper in 1 day. Labor cost was $160, material cost
was $50, and overhead was $320. Determine the multifactor productivity.

Multifactor productivity = 2,000/($160 + $50 + $320)


= 2,000/($530)
= 3.77 rolls per dollar

Problem 3: Computing Multifactor Probability


Compute the multifactor productivity measure for an 8 hour day in which the usable output was 300 units,
produced by 3 workers who used 600 pounds of materials. Workers have an hourly wage of $20, and
material cost is $1 per pound. Overhead is 1.5 times labor cost.

Multifactor productivity = 300 units/(3 x 8 x $20) + (600 x $1) + (3 x 8 x $20 x 1.50)


= 300 units / $480 + $600 + $720
= 0.167 units

Problem 4: Computing Multifactor Probability


A health club has 2 employees who work on lead generation. Each employee works 40 hours a week,
and is paid $20 an hour. Each employee identifies an average of 400 possible leads a week from a list of
8,000 names. Approximately 10% of the leads become members, and pay a one-time fee of $100.
Material costs are $130 per week, and overhead costs are $1,000 per week. Calculate the multifactor
productivity for this operation in fees generated per dollar of input.

Multifactor productivity = [(400)(2)($100)(10%) / (2 x (40 x $20)) + $130 + $1,000]


= $8,000 / $2,730
= 2.93 units

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