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1 BA3653: Operations Management Winter 2017 : Assignment 1 Deadline : February 02, 201 7, 4Pm Instructions: 1. You can u se Excel (optional) to solve your assignment. 2. Explain all the details , like definition, units, justification, etc . 3. Name your file as "ID_Assign1 " where ID is your ID. 4. Please upload your answer file no later than Thursday , February 0 2, 201 7, 4pm . Assignment 1 : Atlantic milk factory needs your consulting advice concerning its business and production processes. The final consulting report describes several steps to increase productivity including implementation of cutting -edge processing techniques through more powerful filtering systems. The following table shows information for the e xisting and proposed systems . Current System New System No. of workers 18 14 Milk produced 2500 gallons 3400 gal lons Wage rate/hour $14 $14 Filtration cost/hour $135 $190 2 a) What are the inputs and output and their values in the Atlan tic milk factory ? (2 marks ) b) Calculate the multifactor productivity for both systems . (3 marks ) c) Assume that current production system includes 900 gallons of Grade -A milk sold at $3.40/gallon , 600 gallons of Grade -B milk at $ 2.90/gallon and 10 00 gallons of Grade -C milk at $1. 50/gallon . Furthermore, assume that under the new system, processing will include 20 00 gallons of Grade -A milk at $2.40/gall on and 1400 gallons of Grade -B milk at $1.90/gallon. Compare the multifactor productivity in the existing and new system s. (5 marks )