Exercise Solutions_Chapter 02

# Exercise Solutions_Chapter 02 - 1 As Operations Manager you...

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1. As Operations Manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report. JAN FEB MAR APR Units Produced 2300 1800 2800 3000 Hours per Machine 325 200 400 320 Number of Machines 3 5 4 4 Productivity 2300/(325*3) = 2.36 1800/(200*5) = 1.80 2800/(400*3) = 1.75 3000/(320*4) = 2.34 Find the average monthly productivity (units per hour). Average productivity (2.36+1.80+1.75+2.34)/4= 2.06 2. Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price each \$1,700 Total labor hours 46,672 Wage rate \$12/hour Total materials \$60,000 Total energy \$4,000 Calculate the productivity in sales revenue/labor expense ? ((1217*1700)/(46672*12))=3.69 3. Acme Corporation received the data below for its rodent cage production unit. Find the total productivity? Output Input 50,000 cages Production time 620 man hours Sales price: \$3.50 per unit Wages \$7.50 per hour Raw materials (total cost) \$30,000 Component parts (total cost) \$15,350 (50000*3.5)/((620*7.5)+30000+15350) = 3.5 4. Labor Productivity – units/hour

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• Winter '14
• Sales, raw material productivity

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