Productivity Concepts and Measures | Assignment

Problem 1
Question(a)
What do we mean when we say productivity is a relative measure? Choose an industry and
measure productivity of the company in two different ways with supportive data.
Answer
In order the word productivity to be meaningful, the same needs to be compared
with something else. The comparison in order to make it meaningful can be done
through intracompany or intercompany just same as done in the case of
benchmarking. Due to differences in accounting practices the intercompany
comparisons only with the single factor productivity can be weak .The accounting
policy, assumption ,procedures and practices involved with respect to inter
company comparison is not up to the mark as specially when the comparison is
done with the foreign competitors involved into it (Advameg, Inc., 2019) .Total
factor productivity are some were more strong and good in case of comparison
purpose .
There are different ways involved in order to measure the productivity of the
company involved, some are listed here in below:
1. Strategy with involvement of Simple Productivity Output Formula.
2. Strategy relates to 360 Degree feedback
3. Time tracking and project Management Software.
4. Social Media Strategy.
5. If there is an involvement of profit the strategy is productive.
6. “Getting Shit done” Strategy.
7. Strategy which relates to daily check -in.
8. Providing service with a strategy of smiling attitude.
http://www.prism.gatech.edu/~bt71/mgt3501/HW_2_sol
Question(b)
Should safety stock be necessary in an MRP system with dependent demand? If so, why?
If not, why do firms carry it anyway?

Answer
Safety stock sometimes also known as buffer stock. It is the extra stock in hand
that the management of the company needs to keep in hand in order to mitigate
the uncertainties involved (Bendis, 2019). The safety stock is necessary in an
MRP system with dependant demand due to following reason involved which are
here in below:
1. In order to protect against the unforeseen differences in supply
2. In order to compensate because of inaccuracy in forecast.
3. Properly keep the customer service at a very high level and mitigate stock
out risk.
4. It also prevents disruptions involved during the manufacturing and
delivery process.
Question(c)
Many practitioners currently update MRP weekly or biweekly. Would it be more valuable if it
were updated daily?
Answer
The performance of any manufacturing items varies on a daily basis. If the time
period in which the observation is done is weekly or biweekly, the variations
involved on a daily basis can be smoothen i.e. the performance on a daily basis
i.e. high or low can be done average. For better explanation if there is an
average performance in one day the same can be offset through the better
performance in the next day and the cycle continues ( Notesolution Inc., 2019). If
the MRP system is updated daily than it can lead to watching the performance
too closely with an abnormal outcome of report.
Answer 2
Part A
Product Mix Problem
The formulation of integer programming for the given set of facts has been
presented as under:
Objective Function
Max Z= (30+b)*a+ 32*b+(30+c)*c+32*d-18a-15b-5c-5d-(35/60)*(12+a)*a-
(42/60)*(12+a)*b-(48/60)*(12+a)*c-(52/60)*(12+a)*d
Decision Variable & Decision Variable Domain
Wherein a= Number of Units of Product A,

b= Number of Units of Product B,
c= Number of Units of Product C,
d= Number of Units of Product D,
Further the above maximisation problem has been subject to following
constraints
X = a+b+c+d
a >= 0.2X
b >= 0.2X
c >= 0.2X
d >= 0.2X
2400 >=
15a+20b+30
c+30d
2400 >=
20a+22b+18
c+22d
Also, the following facts have been provided:
SP Material
Worker 1
(Min)
Worker 2
(Min)
Product A 30+b 18 15 20
Product B 32 15 20 22
Product C 30+c 5 30 18
Product D 32 5 30 22
Part B
The problem has been solved using solver putting the above constraints intact.
Further, the computation has been made without considering any integer
consideration. For computing the profits under the given conditions, the following
constraints have been put in excel:
X = a+b+c+d
a >= 0.2X
b >= 0.2X
c >= 0.2X
d >= 0.2X
2400 >=
15a+20b+30
c+30d
2400 >=
20a+22b+18
c+22d
Based on above constraints in excel with number of units being decision
variable, the profit has been computed at 1632.