Question One: Productivity = Labour Output

a. Labour productivity before new equipment: 80 carts 5 workers = 16 carts per worker hour. Labour productivity after new equipment: 84 carts 4 workers = 21 carts per worker hour.

b. Multifactor productivity = Before new equipment: 80 (5 x 10) + 40 = 80 90

Output All inputs used in production

= 0.89 cedis per cart.

Multifactor productivity after new equipment: 84 (4 x 10) + 50 = 84 90 = 0.93 cedis per cart.

c. It is clearly seen that the output changed in both cases, but the input remained the same in both cases. Labour productivity increased from 16 to 21 carts after the new equipment was introduced. The multifactor productivity (calculated in cedis per cart) also increased from 0.89 to 0.93. Therefore it would be best for the Manager to continue using the new equipment.

Question Two: Workers productivity this week: 160 1 x 40 = 4 units per hour. Workers productivity previous week:

138 1 x 36 = 3.83 units per hour. Productivity growth: Current productivity Previous productivity x 100% Previous productivity 4 - 3.83 x 100% 3.83 = 4.43%

From the above, it is clear that the workers productivity increased by 4.43% from the previous week. If prehaps, the productivity growth was a negative number, then it would have been safe to conclude that the workers productivity had decreased. But since the figure is a positive number, it means that there was growth.

Question Three- Forecasting: a.

Sales Data
25 22 20 19 20 18 15 Sales ('000) (y) 10 18 20

15

0 1
Feb Mar Apr May Jun Jul Aug

b. i. A linear trend equation: Month (t) Feb Mar Apr May Jun Jul Aug t 1 2 3 4 5 6 7 t = 28 Sales ('000) (y) 19 18 15 20 18 22 20 y = 132 ty 19 36 45 80 90 132 140 ty = 542 t
2

Weighted average
1 4 9 16 25 36 49

0.07 0.13 0.2 0.27 0.33

t2 = 140

Where n=7, (t)2=784 Forecast: Ft = a + bt

Where Ft = Forecast for period t a = value for Ft at t = 0 b = slope of the line t = specified number of time periods from t = 0 The coefficients of a and b can be calculated using the formula: a= Substituting: b= 7(542) 28(132) 7(140) 784 132 0.5(28) 7 = 3742 3696 = 980 -784 132 14 7 = 98 196 118 7 = 0.5 y - bt , n b= nty ty nt2 (t)2

a=

= 16.857

Puting into Forecast= Ft = a + bt Where t = 8 (September)

F8 = 16.857 + 0.5(8) = 20.857 sales volume (in terms of thousands is GHC20,857)

b ii. 5 month moving average: F8 = 20+22+18+20+15 5 =19 sales volume (in terms of thousands is GHC19000)

b iii. 5 month moving average: F8 =0.33(20) +0.27(22)+ 0.2(18)+ 0.13(20)+ 0.07(15) =6.6 +5.94 + 3.6 + 2.6 + 1.05 =19.79 sales volume (in terms of thousands is GHC19790)

b iv. Naive approach: Because the sales volume for August was 20, therefore the sales volume for September should be 20 (in terms of thousands is GHC20000).