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Om-Operations Management

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Submitted By mukhallalati
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Class MTG-455 Operations Management Strategy & Competitiveness

Book: Operations Management: Sustainability & Supply Chain Management

PX means the problem may be solved with POM for Windows and/or Excel OM.

1.5 Lori Cook produces “Final Exam Care Packages” for
Resale by her sorority. She is currently working a total of 5 hours
Per day to produce 100 care packages.
a) What is Lori’s productivity?
b) Lori thinks that by redesigning the package, she can increase
Her total productivity to 133 care packages per day. What will be her new productivity?
c) What will be the percentage increase in productivity if Lori makes the change? PX

1.7 George Kyparisis (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. PX

1.9 Lillian Fok is president of Lakefront Manufacturing,
A producer of bicycle tires. Fok makes 1,000 tires per day with the following resources:

Labor: 400 hours per day @ $12.50 per hour
Raw material: 20,000 pounds per day @ $1 per pound
Energy: $5,000 per day
Capital costs: $10,000 per day

a) What is the labor productivity per labor-hour for these tires at?
Lakefront Manufacturing?
b) What is the multifactor productivity for these tires at?
Lakefront Manufacturing?
c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs? PX

1.11 Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has

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