The Production and Operations Manager at a Large Shoe Factory

question 107

Multiple Choice

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.

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Definitions:

Demand Curve

A graph that represents the relationship between the price of a good or service and the quantity demanded by consumers.

Cost Functions

Mathematical relationships expressing the cost of production as a function of the levels of various inputs.

Wheat Farmer

An individual or business involved in the cultivation of wheat as a primary crop.

Fast Food

Quick-service restaurants offering minimal table service and food that is prepared and served very quickly, often packaged for takeout or drive-through service.