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Productivity and actual and forecast demand levels

1. Lori produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages.

a.) What is Lori's productivity?
b.) Lori thinks that by redesigning the package, she can increase her total productivity to 133 care packages per day. What will be her new productivity?
c.) What will be the percentage increase in productivity if Lori makes the change?

2. Consider the following actual and forecast demand levels for hamburgers at a local restaurant:

Day Actual Demand Forecast Demand
Monday 88 88
Tuesday 72 88
Wednesday 68 84
Thursday 48 80
Friday

The forecast for Monday was derived by observing Monday's demand level and setting Monday's forecast level equal to this demand level. Subsequent forecasts were derived by using exponential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, what is the forecast for hamburger demand for Friday?

Solution Preview

a. 100/5 = 20 packages/hr

b. 133/5 = 26.6 packages/hr

c. (26.6-20)/20 = 33%

1. Lori produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages.

a.) What is Lori's productivity?
Productivity= Output / amount of resource used
The resource here is labor hours used.
Productivity=100/5=20 packages per ...

Solution Summary

This post has two queries. It shows how to calculate productivity and actual and forecast demand levels

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