Question
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 in overhead costs, and equipment costs $600 a day to operate.
How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)?
What is the single-factor productivity for labor, per workday (8 hours)? What is the multi-factor productivity, for every dollar spent per shipping bag?
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