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 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 ideally result in an increase in the output of shoes produced. However, since the number of shoes ready for shipping has decreased, it indicates a decrease in productivity. Therefore, option D is the correct choice. Option A does not relate to the given information. Option B may be a likely explanation, but it is not the best choice as it is just a speculation. Option C is unlikely as the given information has been provided by the production and operations manager of the factory. Option E is not relevant as there is no information given about the national production of shoes or even the shoe industry.

The Production and Operations Manager at a Large Shoe Factory