Question 1: Productivity

The following table shows data on the average number of customers processed by several vehicle service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.

Unit	Employee	Customers Processed/Day
A	5	38
B	6	41
C	7	56
D	3	20

a) Compute multifactor productivity for each unit. Use an 8-hour day for multifactor productivity.

b) If Unit B is able to increase its number of customers processed per day from 41 to 55, what will its new multifactor productivity be?

c) What is the percentage change in factor productivity?

Question 2: Forecasting

Paradise Foods Inc. sells canned fish. Monthly sales for a 7-month period are as follows:

Month	Feb	Mar	Apr	May	Jun	Jul	Aug
Sales (100 units)	21	19	15	21	18	22	20

1) Naive Forecasting

2) Weighted Moving Averages using 0.6, 0.3 and 0.1 as weights

3) Exponential Smoothing with a smoothing constant of 0.2, assuming a March forecast of 19000 units

4) Linear Regression

5) Which method do you consider the least appropriate? Why?