A company manufactures particle boards in a production facility. With recent increases in input costs, the company has implemented new machines that lower raw material waste and reduce en- ergy consumption. The new machines also have improved automation and therefore lower the labour requirements for the same level of production. The company believes that if a 3% improve- ment productivity (with respect to each input) is achieved it will offset the increased raw material costs. The company calculated the following information | LAST YEAR CURRENT YEAR 10,000 Boards produced Labour (hours) Wood chips (kg) Resin (kg) Energy (kWh) Labour cost (S/hour) Wood chips cost (S/kg) Resin (S/kg) Energy (S/kWh) 10,000 15,250 10,150 16,000 10,750 500 470 30,000 28,500 20.00 21.50 15.15 15.35 3.55 3.50 0.09 0.10
A company manufactures particle boards in a production facility. With recent increases in input costs, the company has implemented new machines that lower raw material waste and reduce en- ergy consumption. The new machines also have improved automation and therefore lower the labour requirements for the same level of production. The company believes that if a 3% improve- ment productivity (with respect to each input) is achieved it will offset the increased raw material costs. The company calculated the following information | LAST YEAR CURRENT YEAR 10,000 Boards produced Labour (hours) Wood chips (kg) Resin (kg) Energy (kWh) Labour cost (S/hour) Wood chips cost (S/kg) Resin (S/kg) Energy (S/kWh) 10,000 15,250 10,150 16,000 10,750 500 470 30,000 28,500 20.00 21.50 15.15 15.35 3.55 3.50 0.09 0.10
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 41P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,