Question

In: Operations Management

an insurance adjuster processes the claims of sic policy holders in an 8 hour work day.

an insurance adjuster processes the claims of sic policy holders in an 8 hour work day. the adjuster uses $5 in gasoline and $3 in forms and office supplies to complete the work.

1. What is the labor productivity (per labor hour)?

2. What is the multifactor productivity?


Solutions

Expert Solution

Given that, No of policy holders claims processed = Output = 6

No of hours per day = 8 hours

Gasoline cost = $5

Forms cost = $3

Labour productivity = Output / Input = 6 claims / 8 hours = 0.75 claims per hour

Other input = Gasoline input + Forms input

= 5 + 3 = $8

Multifactor productivity = Output / Input = 6 / 8 = 0.75 claims per $ spent

Since the labor cost per hour is not given, we cannot compute the total multifactor productivity.

keosha answered 2 years ago
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