The Production and Operations Manager at a Large Shoe Factory

question 112

Multiple Choice

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.

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Definitions:

Historical Relationship

The examination and understanding of how past interactions, patterns, or events influence current states or future developments.

Ratio Analysis

A quantitative method of projecting HR demand by analyzing the historical relationship between an operational index and the number of employees required.

Operational Index

A quantifiable measure used to assess, compare, and track the efficiency or performance of a business's operations over time.

Estimating HR Demand

The process of forecasting the future needs for human resources in an organization based on operational requirements and strategic goals.