Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make a component part. To make th correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for Alpha and Beta is $150 per unit of product A and $140 per unit of product and the corresponding overhead costs for Alpha and Beta are $7,000 and $5,000, respectively. Process Alpha Process Beta Product A A Output (units) Labor ($) Materials ($) 30 50 60 $1,200 $3,000 $1,400 $1,000 $3,500 $1,400 70 $2,000 $1,500

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 42P
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Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make a component part. To make the
correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for Alpha and Beta is $150 per unit of product A and $140 per unit of product B,
and the corresponding overhead costs for Alpha and Beta are $7,000 and $5,000, respectively.
Process Alpha
Process Beta
Product
A
B
A
В
Output (units)
Labor ($)
Materials ($)
30
50
60
70
$1,200
$3,000
$1,400
$3,500
$1.000
$2,000
$1,400
$1,500
Transcribed Image Text:Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make a component part. To make the correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for Alpha and Beta is $150 per unit of product A and $140 per unit of product B, and the corresponding overhead costs for Alpha and Beta are $7,000 and $5,000, respectively. Process Alpha Process Beta Product A B A В Output (units) Labor ($) Materials ($) 30 50 60 70 $1,200 $3,000 $1,400 $3,500 $1.000 $2,000 $1,400 $1,500
a. Which process, Alpha or Beta, is more productive?
Process Alpha has% higher labor productivity. F
Transcribed Image Text:a. Which process, Alpha or Beta, is more productive? Process Alpha has% higher labor productivity. F
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ISBN:
9781337406659
Author:
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Publisher:
Cengage,