Question: Question 1 ABC Inc operates 5 days per week and 10 hours per day. Prior to installation of a new Manufacturing Processing System, ABC Inc

Question 1 ABC Inc operates 5 days per week and

Question 1 ABC Inc operates 5 days per week and 10 hours per day. Prior to installation of a new Manufacturing Processing System, ABC Inc was able to produce produces 10,000 units of output per week. After installing the new system, weekly output is able to reach 11,000 units. Following are unit cost and consumption rate for type of each input. Before New Sys After New Sys Consumption rate Consumption rate Unit cost (S) Rubber 60 ton per day 50 ton per day 2 per ton Chemical 5 kg per hour 8 kg per hour 30 per kg Assume that the unit cost for input remain the same before and after the system installation. (a) Determine the productivity of Rubber of Tire Inc before and after installation of the new system. Keep two decimal point for all calculation. Please show calculation steps, as discussed in class, for partial credit. (6 marks) (b) Determine the multi-productivity measure of Tire Inc before and after installation of the new system. Keep two decimal point for all calculation. Please show calculation steps, as discussed in class, for partial credit. (7 marks) (c) Is ABC Inc's multi-productivity better after installation of the new Manufacturing Processing System? Explain your conclusion from the perspective of productivity. (6 marks) (d) Should the cost for installing the new Manufacturing Processing System be included in productivity calculation? Explain your conclusion. (6 marks)

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