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Lake Manufacturing produces bike tires. They make 1,000 tires per daywith the following resources:

LABOR: 400 hours per day

RAW MATERIALS: 20,000 pounds per day

ENERGY:   $5.000 per day

CAPITAL COSTS:   $10,000 per day

A. What is the labor productivity per hour for the tires?

B. What is the multi-factor productivity for the tires?

C. What percentage changes in multi-factor productivity if the company can reduce energy costs by $1,000. per day without cutting production, or changing any other inputs?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91700224

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