At oxford lumber inc tom cruise a president and a producer, Ask an Expert

Management Studies

At Oxford Lumber, Inc., Tom Cruise, a president and a producer of an apple crates sold to growers, has been able, with his current equipment, to produces 240 crates per 100 logs. He currently purchases 100 logs per day, and each log required 3 labor hours to process. He believes that he can hire a professional buyer who can buy a better-quality log at the same cost. If this is the case, he increases his production to 260 crates per 100 logs. His labor hours will increase by 8 hours per day.

(a) What is the labor productivity of the current system? What is the labor productivity of a new system with buyer? (Please compare two systems.)

(b) What is the percentage change of productivity in this case? (Please specify whether it either increases or decreases.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93116543

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