Productivity and Cost In this paper, I will describe a company that has made a strategic decision based on productivity, wages and benefits, and other fixed and variable costs. I will also include the decision that was made and discuss the outcomes. In addition, I will incorporate the law of diminishing marginal productivity and the relationship between productivity and cost. For the purpose of this paper, I have chosen the company Visteon Automotive Systems. Visteon Automotive Systems is an enterprise of the Ford Motor Company, as well as the worlds second largest supplier of automotive parts and components. They employ 82,000 people and have 120 manufacturing, engineering sales, and technical centers located in 21 countries (Holcomb et al., 2000). In 1996, one of Visteons plants, the Sterling Plant, started a new production line to assemble front axles for four wheel drive trucks and sport utility vehicles. They quickly discovered there is an incredible demand for four wheel drive trucks had become overwhelmed by it. In fact, in the first year of production, the dema......

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