In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item? Book Operations Management: Sustainability and Supply Chain Management Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New York, NY: Pearson Higher Education.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Problem #8.1
In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10
laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each
making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to
produce the item?
Book
Operations Management: Sustainability and Supply Chain Management
Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New
York, NY: Pearson Higher Education.
Transcribed Image Text:Problem #8.1 In Cambodia, 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, two laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item? Book Operations Management: Sustainability and Supply Chain Management Render, B., Heizer, J. (2016). Operations Management w/POM for Windows (12th ed). New York, NY: Pearson Higher Education.
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