Ratio Index Numbers-ECO6416

Ratio Index Numbers-ECO6416 - Man Hours 1 0283 200000 11315...

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Ratio Index Numbers The following provides the computational procedures with applications for some Index numbers, including the Ratio Index, and Composite Index numbers. Suppose we are interested in the labor utilization of two manufacturing plants A and B with the unit outputs and man/hours, as shown in the following table, together with the national standard over the last three months: Plant Type - A Plant Type - B Months Unit Output Man Hours Unit Output
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Unformatted text preview: Man Hours 1 0283 200000 11315 680000 2 0760 300000 12470 720000 3 1195 530000 13395 750000 Standard 4000 600000 16000 800000 The labor utilization for the Plant A in the first month is: L A,1 = [(200000/283)] / [(600000/4000)] = 4.69 Similarly, L B,3 = 53.59/50 = 1.07. Upon computing the labor utilization for both plants for each month, one can present the results by graphing the labor utilization over time for comparative studies....
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