Supply Chain Management Home Work 2 BUS 370

Homework Quetions Needed 4 Question

Problem 1: Productivity and Productivity Growth (8 points)

The labor hours and units processed by your manufacturing facility are shown below. 

a)      What is the productivity (in terms of units per labor hour) for each of the three months? (3 points)

a)      What is the productivity growth from February to March? (2 points) 

 a)      If the average hourly wage is $10/hour, what is the productivity (in terms of units per labor dollar) for January? (2 points)

Problem 2: Efficiency and Utilization (8 points)

The engineering department has determined the standard output for a workstation is 113 units per hour.  Assume this workstation was used 8 hours yesterday and produced 796 units.

a)      What was the efficiency of the workstation yesterday? (2 points)

a)      What output level would be needed to achieve 95% efficiency at this workstation? (2 points)

a)      The greatest output this workstation could possibly achieve in a day is 2,625 units.  What was yesterday’s utilization? (2 points)

What output level would be needed to achieve 95% utilization at this workstation? (2 points)

Problem 3: Total Cost and Breakeven Point (9 points)

Use the following variable and fixed costs for Speedy Oil Change to answer the questions below.

Variable Costs:

Fixed Costs:

a)      What is the total annual fixed cost for Speedy Oil Change? (2 points)

a)      What is the total variable cost (per oil change) for Speedy Oil Change? (2 points)

a)      If Speedy Oil Change performed 5,000 oil changes last year, what was its total cost? (2 points)

a)      How many oil changes does Speedy Oil Change need to perform in a year at $30 per oil change to break even? (3 points)