OM210 - Operations Management

PROBLEM 2 (20 points) The weekly output of a production process is shown below together with data for labor and material inputs. The standard inventory value of the output is $125 per unit. Overhead is charged at the rate of $ 1500 plus 0.5 times direct labor cost. Assume a 40 hour week and an hourly wage of $16. Material cost is $10 per running foot. Compute the average multifactor productivity for this process. Week Output # Workers Material (ft.) 1 412 6 2840 2 364 5 2550 3 392 5 2720 4 408 6 2790