Calculate labor productivity and multifactor productivity


The manager of a crew that installs carpets has tracked the crew’s output over the past several weeks, and the data are as follows:

Week                     Crew Size                    Yards Installed

1                            4                                  480

2                            3                                  351

3                            4                                  484     

4                            2                                  250     

5                            3                                  348

6                            2                                  250

a. Calculate labor productivity and multifactor productivity for each of the weeks.

b. What does the evidence for labor productivity suggest regarding the relationship between crew size and productivity?

c. What does the evidence for multifactor productivity suggest regarding the relationship between crew size and productivity?

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Operation Management: Calculate labor productivity and multifactor productivity
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