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Operations And Supply Chain Management

F. Robert Jacobs

Business Studies

14th Edition · 800 pages

ISBN: 9780078024023

Chapter 1: Q160Q (page 38)

Question: Live Trap Corporation received the data below for its rodent cage production unit. Find the total productivity.

Short Answer

Expert verified

Answer

The productivity is 1 unit or 3.5 dollars per dollar input

Step by step solution

01

Understanding the question.

The question has asked to find the total productivity, but it does not specify in what units. There are two ways in which total productivity can be measured. One is in unit sold per dollar input, and the other is in sales per dollar.

02

Calculating productivity in units sold in per dollar input.

$Productivity = \frac{O u t p u t u n i t s}{[(P r o d u c t i o n t i m e \times w a g e s) + r a w m a t e r i a l + c o m p o n e n t p a r t s)]} = \frac{50000}{[(620 \times 7.50) + 30000 + 15350]} = \frac{50000}{4650 + 30000 + 15350} = \frac{50000}{50000} = 1 unit sold per dollar input$

$Productivity = \frac{O u t p u t u n i t s}{[(P r o d u c t i o n t i m e \times w a g e s) + r a w m a t e r i a l + c o m p o n e n t p a r t s)]} = \frac{50000 \times 3.5}{[(620 \times 7.50) + 30000 + 15350]} = \frac{175000}{4650 + 30000 + 15350} = \frac{175000}{50000} = 3.5 dollars in sale per dollar input$

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