DEPARTMENT OF BUSINESS INFORMATICS AND OPERATIONS MANAGEMENT
RESEARCH GROUP OPERATIONS AND PRODUCTION MANAGEMENT
INTRODUCTION TO OPERATIONS MANAGEMENT
EXERCISES
Production and Logistics/Logistics and Supply Chain Management – Prof. dr. Veronique Limère
EXERCISE 1
The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining
these figures:
Week
1
2
3
4
5
6
Crew size
4
3
4
2
3
2
Yards installed
96
72
92
50
69
52
Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude
about crew size and productivity?
Copyright © Limère, © 2015 McGraw-Hill Education.
All rights reserved. No reproduction or distribution without the prior written consent.
EXERCISE 2
The following table shows data on the average number of customers processed by several bank service units
each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per
customer.
Unit
A
B
C
D
Employees
4
5
8
3
Customers processed/day
36
40
60
20
a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for
multifactor productivity.
b) Suppose a new, more standardized procedure is to be introduced that will enable each employee to process
one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit.
Copyright © Limère, © 2015 McGraw-Hill Education.
All rights reserved. No reproduction or distribution without the prior written consent.
Copyright © Limère, © 2015 McGraw-Hill Education.
All rights reserved. No reproduction or distribution without the prior written consent.