Problem Questions
Question 1:
Riverside Metal Works produces cast bronze valves on a 10-person assembly line. On a recent day 160 valves were produced during an 8-hour shift.
A) Calculate the labor productivity of the line.
B) The operations manager was able to change the layout and increase production to 180 units per 8-hour shift. What is the new labor productivity per labor hour?
C) What is the percentage of productivity increase?
Question 2:
Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these items into an ABC classification:
Item Annual Demand Cost/Unit
A2 3000 $50
B8 4000 $12
C7 1500 $45
D1 6000 $10
E9 1000 $20
F3 500 $500
G2 300 $1500
H2 600 $20
I5 1750 $10
J8 2500 $5
A) Develop an ABC classification system for the 10 items.
B) How can Boreki use this information?
C) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?
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