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Granville Inc. produces three types of IT gadgets. Products A and B are produced using Make-To-Stock (MTS) system, while product C is produced using Make-To-Order
Granville Inc. produces three types of IT gadgets. Products A and B are produced using Make-To-Stock (MTS) system, while product C is produced using Make-To-Order (MTO) system. Products A and B are sold in the Singapore market, while product C is exported to the European market. Production data in April 2022 are collected as follows: Product A Product B Product C Production (units) 12,000 15,000 2,000 Manpower (# of full-time workers) 20 5 4 Machine (# of machine) 8 5 2 Raw Materials (S$) 450,000 250,000 80,000 Assume that each full-time worker works eight hours a day, five days a week, four weeks a month; each machine operates eight hours a day, five days a week, four weeks a month. a. Measure the single-factor productivity of manpower (unit/hour), single-factor productivity of machine (unit/hour), and single factor productivity of raw material (unit/S$) for the three products. For each type of productivity, which product has the lowest productivity? Do you think the conclusion is reasonable? Why or why not
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