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Question 2: Productivity Improvement

ABC Company has an inventory room. In 2020 (base year), 200,000

packages were handled by 40 workers. In 2021 (target year), 190,000

packages were handled by 38 workers-answer the following questions.

Show the formula and your calculations.

(a) What is the labor productivity ratio for the base year?

(b) What is the labor productivity ratio for the second year?

(c) What is the productivity index for the second year? Was the productivity increased?

Explain why.

(d) Write two productivity improvement ideas. Explain it in terms of capital and technology.