6 Management Sustainability and Supply Chain Man not purcnas

6 Management Sustainability and Supply Chain Man... not purcnase tme vienger suggesta In rToDIemI 1.I, wnat wll tne productivity of the bakery be? What will be the percent increase or decrease? 1.15 In December, General Motors produced 6,600 cus- tomized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hours did the average laborer work that month? b) If productivity can be increased to 0.11 vans per labor- hour, how many hours would the average laborer work that month? EMENT ast year This year. Then determine the percent change in productivity for the monthly average last year versus the monthly average this year on a multifactor basis. Labor: $8 per hour Capital: 0.83% per month of investment

Solution

1.15

Production in December = 6,600 vans

Labor productivity = 0.1 vans per labor-hours

So, labor-hours employed = Production / labor productivity = 6,600 / 0.10 = 66,000 lavor-hours

(a)

No. of workers = 300

So, average hours worked per month = 66000 / 300 = 220 hours

(b)

SImilarly, for the labor productivity being 0.11 vans per labor-hours,

Average hours worked per month = 6,600 / (300 x 0.11) = 200 hours

1.16

Output = 52 x $90 + 80 x $198 = $20,520

Input = 45 x 8 labor-hours = 360 labor-hours

Labor productivity = Otput / Input = 20,520 / 360 dollar per labor-hours = 57 dollars per labor hour

1.17

* Labor ($) = $8 x Labor (hours): $8 x 350 = $2,800

** Capital ($) = 0.83% x Capital Investment ($): 0.83% x $15,000 = $125

*** Energy ($) = $0.60 x Energy (BTU): $0.60 x 3000 = $1,800

**** (0.343 - 0.317) / 0.317 = 8.13%

	Last Year	This Year
Prodution (dozens)	1500	1500
Labor (hours)	350	325
Capital investment ($)	15000	18000
Energy (BTU)	3000	2700
	Last Year	This Year	% increase
Prodution (dozens)	1500	1500
Labor ($)	$2,800 *	$2,600
Capital ($)	$125 **	$149
Energy ($)	$1,800 ***	$1,620
Total cost of inputs	$4,725	$4,369
Multifactor productivity	0.317	0.343	8.13% ****