[SOLVED] RSM 270H1F Introduction to Operations Management

RSM 270H1F Introduction to Operations Management
This is the sample questions for lecture 1 for your preparation.
Problem 1 Give an example for the downsides of efficiencies and an example of downsides of effectiveness in each of the following examples:
Air Travel

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Downside of efficiency: overbooking/customer has to take a different flight
Downside of effectiveness: Under-utilized planes due to empty seats Retail Industry
Downside of efficiency:forgone opportunity and consumer dissatisfaction Downside of effectiveness:Higher inventory cost
Emergency room
Downside of efficiency:overcrowded and delays in ER
Downside of effectiveness:Under-utilized personnel and facilities
Problem 2 A company that makes candles, has 4 workers, one machine and the company produces 80 candles per hour on average. Labor cost is $10 per worker per hour, and machine cost is $15 per hour.
Calculate labor productivity. Use candles per worker per hour as the measure of labor productivity.
Calculate the multifactor productivity. Use candles per dollar cost (labor plus machine) as the measure.
When calculating productivity, check the unit that you are asked to use.
In the first part, the measure is candle per worker per hour. As stated in the problem for
output of 80 candles, the input of 4 1 worker hours are used. Therefore labor productivity
is 80 = 20 candle per worker per hour. 4
For the second part, the unit is candle per dollar cost. As stated in the problem, for the
output of 80 candles, the input (in terms of dollars) of 4 10 + 15 1 = $55. Therefore, the
multifactor productivity is 80 candles per dollar. 55

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