Question: A company has collected the data as shown in the table below for the factories it operates. The plants are of similar size and capacity.
A company has collected the data as shown in the table below for the factories it operates. The plants are of similar size and capacity. All data are in thousands of US$.
a- Calculate the labor, capital and multifactor (including, labor, capital and materials) productivity for each plant for all years.
b- Using the data in the table, plot plant As and Bs labor productivity on the same graph.
c- Using the data in the table, plot plant As and Bs capital productivity on the same graph.
d- Using the data in the table, plot plant As and Bs multifactor productivity on the same graph.
e- Evaluate each factorys performance overtime both independent of the other factory and relative to the other factory, what would you recommend?
| Plant A | Plant B | ||||||
Year | Sales | Labor | Capital | Materials | Sales | Labor | Capital | Materials |
2010 | 3480 | 178 | 870.5 | 1780 | 3510 | 180 | 878 | 2080 |
2011 | 3790 | 191 | 967 | 2030 | 3820 | 195 | 1023 | 2060 |
2012 | 4030 | 200.5 | 1050 | 2210 | 3960 | 200 | 1080 | 2105 |
2013 | 4060 | 199 | 1080 | 2180 | 4100 | 215 | 1117 | 2330 |
2014 | 4270 | 206 | 1160 | 2190 | 4290 | 217.5 | 1257 | 2430 |
2015 | 4580 | 218 | 1260 | 2410 | 4650 | 232.5 | 1200 | 2660 |
2016 | 4830 | 226 | 1360 | 2850 | 4750 | 240 | 1210 | 2440 |
2017 | 4890 | 225.5 | 1405 | 2750 | 4790 | 249.5 | 1290 | 2760 |
2018 | 5020 | 228 | 1470 | 2970 | 5040 | 252 | 1380 | 2920 |
2019 | 5050 | 226 | 1510 | 2990 | 5340 | 270 | 1450 | 3120 |
2020 | 5510 | 243 | 1680 | 3100 | 5630 | 290 | 1530 | 2960 |
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