An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which all

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An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which all

ows for 3 separate 8 hour shifts. a. If a worker can produce 10 parts/hour, how many workers are needed on each shift? b. If each shift has 100 workers, what is the productivity of an individual worker? c. If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part A?

Business

1 answer:

Katen [3.5K] · Answer 1 · 2026-02-22T16:55:43+03:00

Answer:

Part A:

Required workers=20.833≅21

Part B:

Each worker's productivity=2.0833 parts/hour

Part C:

Multifactor productivity=0.0832 Parts/$

Explanation:

Part A:

Total parts produced =100,000

Workers required= Total parts/(Parts per hour* hours per shift*Total Shifts)

$Worker\ needed=\frac{100000}{10\ Parts/hour*8\ hours/shift*60\ shifts/worker} \\Workers\ needed= 20.833$

Workers required=20.833≅21

Part B:

Individual worker productivity:

$Productivity\ of\ individual\ worker=\frac{100000}{100\ workers*8\ hours/shift*60\ shifts/worker} \\Productivity\ of\ individual\ worker=2.0833\ parts/hour$

Part C:

Total material costs= $10*100,000=$1,000,000

Capital cost= $100,000

Total labor expenses= $21\ workers*8\ hours/shift*60\ shifts/worker*\$10/hour$

Total labor expenses=$100,800

Multifactor productivity=Total Parts/(Total material costs+capital costs+Total labor expenses)

$Multifactor\ productivity=\frac{100000}{\$1,000,000+\$100,000+\$100,800} \\ Multifactor\ productivity=0.08324\ Parts/\$$