Production and Operations Management
MGT 455 Module 1: Assignment
Module 1: Topic and Objectives
Operations Management Strategy and Competitiveness
Module 1: Assignments MGT 455 Week 1 Assignment
Problems 1.7 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows:
• Labor: $10 per hour
• Resin: $5 per pound
• Capital expense: 1% per month of investment
• Energy: $.50 per BTU.
Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.
Data from Problem 1.6
Last Year Now
Units produced 1,000 1,000
Labor (hours) 300 275
Resin (pounds) 50 45
Capital invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850
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