The production and operations manager at a large shoe factory notices that the total number of hours worked by production employees has increased 12 percent, while the number of pairs of shoes ready for shipping has dropped 6 percent this year over last year.This means
A) the inflation rate is unchanged.
B) the demand for shoes is decreasing.
C) the manager's calculations cannot be correct.
D) productivity has decreased.
E) the gross national product has increased by 6 percent.

Question

Quizplus · Accepted Answer

The increase in the number of hours worked by production employees should result in an increase in the number of pairs of shoes ready for shipping, assuming productivity remains constant. However, the decrease in the number of pairs of shoes ready for shipping means that productivity has decreased.

The Production and Operations Manager at a Large Shoe Factory