Operations

Operations

Management SCM

Activity/Assignment

Module 01 Chapter 01

Problem 1.9 Canada Post

Canada Post is evaluating the productivity of its mail processing centres. The centres

differ in the degree of automation, the type of work that can be performed and the skill

of the workers.

Centre

1

2

3

Piece Processed per hour

1,000

2,000

3,000

Number of Workers per hour

10

5

2

Hourly Wage Rate

$20.50

$25.00

$27.00

Overhead Rate per hour

$10.00

$25.00

$50.00

A.

Calculate the multifactor productivity for each centre