Problem Questions
Problem 1.
The Bureau of Labor Statistics collects input and output data from various countries for comparison purposes. Labor hours are the standard measure of input. Calculate the output per hour from the following data. Which country is most productive? Labor Hours Units of Output
United States 89.5 136
Germany 83.6 100
Japan 72.7 102
Answer: Output per hour = Units of output/labor hours Labor Hours Units of Output Output per hour
United States 89.5 136 136/89.5=
1.519553073
Germany 83.6 100 100/83.6=
1.196172249
Japan 72.7 102 102/72.7=
1.403026135
United States is more productive.
Problem 2. Construct a network from the information in the following table and identify all the paths in the network, compute the length of …show more content…
Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out. Compute the average product cost.
In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.05 and will reduce defective orders to 1%. What is the annual net effect of this quality improvement initiative? What other indirect effects on quality might be realized by the new computerized order system?
Answer: Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked units)]/ yield Product cost = {[6.15 x 680] + [1.75(0.04)(680)(0.10)]}/ [680(0.96) + 680(0.04)(0.10)] = $6.39 = 6.4
Average Product cost = $6.4
(b) Product cost = {[6.20 x 680] + [1.75(0.01)(680)(0.10)]}/ [680(0.99) + 680(0.01)(0.10)] =
Problem 1.
The Bureau of Labor Statistics collects input and output data from various countries for comparison purposes. Labor hours are the standard measure of input. Calculate the output per hour from the following data. Which country is most productive? Labor Hours Units of Output
United States 89.5 136
Germany 83.6 100
Japan 72.7 102
Answer: Output per hour = Units of output/labor hours Labor Hours Units of Output Output per hour
United States 89.5 136 136/89.5=
1.519553073
Germany 83.6 100 100/83.6=
1.196172249
Japan 72.7 102 102/72.7=
1.403026135
United States is more productive.
Problem 2. Construct a network from the information in the following table and identify all the paths in the network, compute the length of …show more content…
Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out. Compute the average product cost.
In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.05 and will reduce defective orders to 1%. What is the annual net effect of this quality improvement initiative? What other indirect effects on quality might be realized by the new computerized order system?
Answer: Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked units)]/ yield Product cost = {[6.15 x 680] + [1.75(0.04)(680)(0.10)]}/ [680(0.96) + 680(0.04)(0.10)] = $6.39 = 6.4
Average Product cost = $6.4
(b) Product cost = {[6.20 x 680] + [1.75(0.01)(680)(0.10)]}/ [680(0.99) + 680(0.01)(0.10)] =