>> Operation Management
Road racing bikes have special seats that are flexible with minimum contact with cyclists. These seats are called toupe saddles. Roscoe Specialty Equipment makes 100 of these seats per day with the following resources. Labor: 40 hours per day @ $15.00 per hour Raw material: 20 kilograms per day @ $1.00 per kg Energy: $200 per day Capital costs: $500 per day
A) What is the labor productivity per labor hour for these toupe saddles at Roscoe?
B) What is the multifactor productivity for these toupe saddles at Roscoe?
C) What is the % change in multifactor productivity if Roscoe can reduce the energy bill by $150 per day without cutting production or changing any other inputs?