ELABORATED TEST BANK FOR
OPERATIONS MANAGEMENTS –
CHAPTER 2 ,17ocs,QUESTIONS
AND ANSWERS
A Swiss manufacturing company that operates two
manufacturing plants—one in the United States and the
other in India—shows the following results (all figures are
in U.S. dollars). Compute the multifactor productivity
measure using all inputs. Which country has the higher
productivity?US IndiaSales 2500000 1800000Labor
450000 350000Raw material 170000 120000Capital
equipment 360000 200000 - CORRECT ANSW-India
Orion Tile & Marble Inc. (Anaheim, CA) supplies and
installs ceramic tiles. The company tracks its workers'
output over the past several weeks, and the data are as
follows. In which week was labor productivity the highest?
Week Number of Workers Tiles Installed
1 5 120
2 4 4 112
3 4 3 88
4 3 2 69
5 2 2 44
6 5 5 115
7 2 2 54
A. Week 2
B. Week 6
C. Week 1
D. Week 7 - CORRECT ANSW-Week 2
The fictional Taj Mahal Indian grocery store had sales of
US$50,000 in August and US$62,000 in September.
There are 10 full-time workers in the store, each of whom
worked 40 hours a week. In August, the store also
employed four part-time workers, each of whom worked
15 hours a week. In September, eight part-time workers
were employed, each for 10 hours a week. Assuming
there are four weeks in each month, and sales dollars are
the output measure, what was the change in productivity
from August to September?
30.46%
18.83%
26.58%
32.09% - CORRECT ANSW-18.83%
You run a medium-sized farming equipment repair firm in
North Dakota. Your busiest season is the late fall through
winter months when area farmers need repairs done to
their equipment. Because you have limited cash flow,
keeping extra people on your payroll is expensive and
undesirable. You have determined that each worker must
work 120 hours per month and you can repair an average
of 42 machines each month. If their labor productivity rate
is 0.175, how many workers can you employ at your
company?
1.46
2.00
1.17
1.75 - CORRECT ANSW-2.00
The following data were collected by Orion Industries Inc.
(Auburn, WA) to compile the monthly productivity report to
be presented to its board of directors. By using these data,
compute partial machine productivity.
Number of units produced 150000
Labor hours used 12000
Machine hours used 5000
Materials cost 50000
Energy cost 18000
30
27
32
25 - CORRECT ANSW-30
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