Productivity can be measured in a variety of ways such as


Productivity can be measured in a variety of ways, such as by labor, capital, energy, and material usage. At Modern Lumber Inc.: Art Binley, President and producer of apple crates sold to growers, has been able to produce 240 crates per 100 logs with his current equipment. He currently purchases 100 logs per day, and each log requires 3 labor hours to process. He believes that he can hire a professional buyer who can buy a better quality log at the same cost. If this is the case, he can increase his production to 260 crates per 100 logs. His labor hours will increase by 8 hours per day. What will be the impact on productivity (measured in crates per labor hour) if the buyer is hired?

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Operation Management: Productivity can be measured in a variety of ways such as
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