Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a
Question:
Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a day. He estimates his labor cost to be €9 per hour. Also, he has estimated that the total material cost for each script is approximately €2 while the daily expenses are €28. Calculate the multifactor productivity. In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink, thereby raising the material cost to €2.5 per day. Is the new productivity better than before? If Mr. Achebe would like to increase the photocopy process to 150 scripts without sacrificing the initial multifactor productivity, by what amount has the material costs to be increased?
Step by Step Answer:
Operations Management Sustainability And Supply Chain Management
ISBN: 9781292295039
13th Global Edition
Authors: Jay Heizer, Barry Render, Chuck Munson