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Operations and Supply Management

6. Various financial data for 2007 and 2008 follow. Calculate the total productivity measure and the partial measure for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?

2007 2008
Output: sales $200,000 $220,000
Input: Labor 30,000 40,000
Raw materials 35,000 45,000
Energy 5,000 6,000
Capital 50,000 50,000
Other 2,000 3,000

7. An electronics company makes communications devices for the military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 works two week (40 hours per week) to complete. The army contract was for 5,500 devices that were produced by 35 workers in three weeks. On which contract were the workers more productive?

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Solution Summary

This solution gives an explanation of how to calculate total productivity which can be very easily understood by anyone with a basic understanding of the concepts.