Question

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

Answer

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