Question

The reject rate at the company's footwear production facilities are a function of such factors as

a. per worker expenditures for best practices training, the number and size each production facility's production capacity, the number of hours of overtime pay production workers receive, and whether the production facility has installed production improvement option D
b. the S/Q rating of the pairs being produced, the percentage use of superior materials, and the installation of production improvement option C
c. the size of workers annual base pay, yearend incentive bonuses, the number of hours of overtime pay, the S/Q rating of the pairs being produced, annd the number of models/styles compromising the company's product line
d. spending for TQM/six sigma, quality control efforts, the number of models/styles compromising equipment, and whether production improvement option A has been installed
e. the size of the incentive payment per non-defective pair produced, per pair spending for TQM/six stigma quality control efforts, the number of models/styles compromising the company's product line, and the installation of plant upgrade option A

Answer 1

Factors influencing a company's footwear production reject rate include wages, union demands, machinery usage, comparative advantage, and production choices for labor and capital use, all affecting production efficiency and quality.

Step-by-step explanation:

The reject rate at a company's footwear production facilities can be influenced by multiple factors. When unions demand higher wages, firms may opt for production methods that rely more on physical capital and less on labor to increase labor productivity. For instance, the firm might change combinations of labor and machinery usage, such as reducing the number of hours paid to labor and increasing the number of machines, especially if the wage rises significantly, say from $16 an hour to $24 an hour, to minimize costs and meet production demands efficiently. Furthermore, such production choices have implications on the employment level, as opting for more machinery could lead to hiring fewer workers.

From an economic perspective, focusing on comparative advantage, as illustrated by the shifting of workers in the United States and Mexico, can result in more efficient production distribution, and this can potentially influence the quality of production. Hence, all these factors interact in determining the final reject rate and overall production efficiency.