Applying productivityfacility a is in atlanta the labor, Ask an Expert

Management Studies

Applying Productivity

Facility A is in Atlanta. The labor productivity at Facility A is .11 units/hour, and labor cost is $15hour. Capital cost is $12 MM per year.

Facility B is in Puerto Rico. The labor productivity at Facility B is .06 units/hour, and labor cost is $8/hour. Capital cost is $6 MM per year.

If each facility produced 10,000 units last year, which facility was more productive? By what percentage?

What might we assume about how each operation is setup in terms of technology / equipment?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92507398

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