The production team of Widget Corp., a furniture manufacturer, has determined the amount of wood, metal, fabric, and labor hours and the electricity required to make one chair. The collective effort of all these resources would help the company determine its _____.
A) economic order quantity
B) partial productivity
C) multifactor productivity
D) internal service quality

Question

Quizplus · Accepted Answer

The given scenario involves multiple inputs (wood, metal, fabric, labor hours, and electricity) to produce one output (chair). Therefore, the best choice would be multifactor productivity, which measures the output in relation to the multiple inputs used. Economic order quantity (A) refers to the optimal order quantity to minimize inventory costs, partial productivity (B) measures the output in relation to a single input, and internal service quality (D) refers to the quality of internal services provided within a company.

The Production Team of Widget Corp