1) The average number of customers processed each day is 36 and the number of employees doing the processing is 4. The hourly wage rate for the 8-hour workday is $25, the overhead rate is 1.0 times the labor cost, and material cost is $5 per customer. a) Compute the labor productivity and multifactor productivity. b) From a), suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the new labor productivity and multifactor productivity. 2) a) What does productivity measure? Why is it important in operations management? Give two factors that enhance productivity and illustrate with an example for each. b) Give two limitations/shortcomings of productivity as a measure and illustrate with an example for each. 3) What is PESTEL analysis and how can it help with location planning? a) Illustrate with an example how an environmental factor can override cost considerations in location planning. b) Then illustrate with an example how a legal factor can override cost considerations in location planning. 4) a) How is employee performance measured at work? Illustrate with an example and explain why it is important. b) How can an operations manager motivate employees better based on Expectancy Theory? Illustrate with an example. 5) A company would like to reduce its inventory cost by determining the optimal number to obtain per order. The annual demand is 1,500 units; the setup and ordering cost is $10 per order; and the holding cost per unit per year is $.50. What is the optimal number of units per order correct to the nearest whole number? Calculate the total annual inventory costs. 6) a) Location A has fixed costs of $200,000, material cost of $0.20 per unit, labor cost of $0.40 per unit, and overhead cost of $0.40 per unit. Location B has fixed costs of $180,000, material cost of $0.25 per unit, labor cost of $0.75 per unit, and overhead cost of $0.75 per unit. Location C has fixed costs of $170,000, material cost of $1.00 per unit, labor cost of $1.00 per unit, and overhead cost of $1.00 per unit. Show with calculations and a graph the range of quantities for which each of the alternative locations would be best.