What is its multifactor productivity

Assignment Help Operation Management
Reference no: EM13992187

Airphone, Inc., manufactures cellular telephones at a processing cost of $47 per unit. The company produces an average of 250 phones per week although there are 16% defective phones. Each phone takes one hour to make. At this time, none of the defective phones can be reworked but can be sold as is. Each good phone is sold for $125. The defective phones are sold for parts that provide $12 in revenue per phone.  

The output is defined as the revenue that the company receives.

a) What is the company's labor hours productivity and what is its multifactor productivity?

b) Suppose that the company is now able to rework half of the defective phones. It takes an additional 0.5 hours to rework a defective phone. The cost of reworking a defective phone is $16. After it has started reworking the defective phones that can be reworked, what is the company's labor hours productivity and what is its multifactor productivity? The remaining defective phones that cannot be reworked can still be sold for parts that provides $12 in revenue per phone.

c) What is the percent change in the multifactor productivity if the initial process used is the one without the rework capability and is then replaced by the process with the rework capability?

Reference no: EM13992187

Forecast values based on simple moving average method

While monitoring the forecast values based on simple moving average method (averaging period = 3), the tracking signals are consistently coming out as large positive numbers (

Backstreets make month in order for service to break even

The owner of backstreet’s Italian restaurant are considering starting a delivery service for pizza and their are other Italian dishes in the small college town where they are

What is the average multi-factor productivity for process

Operation management 11th edition Stevenson, William. solution for this problem; The weekly output of a production process is shown below, together with data for labor and mat

Discuss how changes in the demographic composition

Discuss how changes in the demographic composition of the U.S. workforce will affect the employment relationship from an employer’s perspective. What possible impact will thes

What environmental factors-internal and external

Environmental Factors. What environmental factors - internal and external - could impact the recruitment, selection, and retention of this position? How can you set your organ

Discuss how accounting-economic and social costs

Subject: Transportation. *Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs. •Analyze how the comp

Five-forces model to evaluate the competitiveness

Use Porter’s Five-Forces Model to evaluate the competitiveness within the U.S. laptop computer market. Which of the Five-Forces is the strongest and most significant in this m

Responding to an electrifying business opportunity

You’ve known Eric since third grade. You remained friends through high school and were roommates your freshman and sophomore years in college. But he majored in physics and yo

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd