An electronics company makes communications devices for military contracts. The

Question

An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,110 devices and took 20 workers four weeks (40 hours per week) to complete. The army contract was for 5,400 devices that were produced by 36 workers in four weeks a. Calculate the productivity for navy and army contracts in units produced per labor hour. (Round your answers to 2 decimal places.) Navy Army b. On which contract were the workers more productive? O Army contract O Navy contract References Worksheet Difficulty: 3 Challenge Problem 2-20 Learning Objective: 02-05 Evaluate productivity in operations and supply chain management

Explanation / Answer

Number of communication devices produced under navy contract = 2110 units

Number of total hours to produce above units = 20 workers x 4 weeks x 40 hours/ week = 3200

Thus , productivity for navy contract = 2110 / 3200 = 0.659 units/ hour

For army contract, numbe rof communication devices produced = 5400 units

Number of worker-weeks required to produce above units = 36 workers x 4 weeks x 40 hours = 5760 hours

Therefore, productivity for army contract = 5400 / 5760 = 0.9375 units/ hour

Thus, Productivity for army contract ( i.e. 0.9375 unit/ hour) > Productivity for navy contract ( i.e. 659 unit/ hour)

WORKERS ARE MORE PRODUCTIVE ON ARMY CONTRACT

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