The Production and Operations Manager at a Large Shoe Factory

The production and operations manager at a large shoe factory in Fall River, Massachusetts, 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 indicates that

A) the inflation rate is unchanged.
B) 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.