OM 302 Quiz 1.pdf - OM302-3 Spring 2019 Quiz 1 Name(5...

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OM302-3 Spring 2019 Quiz 1 Name: -------------------------------- (5 Points) 1- A bicycle tire company makes 1,000 tires per days with the following resources. Labor 400 hours per day @ $12.50 per hour Raw Material 20,000 pounds per day @ $1 per pound Energy $5,000 per day Capital cost $10,000 per day a. Calculate labor and multifactor productivity for these tires. b. What is the percent change in productivity if the company cuts the cost of electricity by $1,000 per day without any changes to any other input? Capital cost $10,000 per day a. Calculate labor and multifactor productivity for these tires. Labor Productivity = prouction units 𝐿???? ??𝑖?? = 1000 400 = 2.5 ?𝑖????? ??? ????? ℎ??? ????𝑖?????? ???????𝑖?𝑖?? = 𝑃?????? ??𝑖?? ????? ???? ?? ???????𝑖?? ????𝑖?????? ???????𝑖?𝑖?? = 1000 400?12.5 + 20000𝑋1 + 5000 + 10000 = 1000 40000 = 0.025 ?𝑖????? ??? ?????? b. What is the percent change in productivity if the company cuts the cost of electricity by $1,000 per day without any changes to any other input? New productivity = 1000 400𝑥12.5+20000𝑋1+5000+9000 = 1000 39000 = 0.025641 Change in Productivity = 0.025641 0.025 = 0.000641 % change = 0.025641 0.025 𝑋 100% = 2.564%
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1. Which of the following are the primary functions of all organizations?
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