Amazon Area Manager Practice Test

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What is the correct formula for productivity rate related to volume?

Actual volume/(actual scheduled hours + actual overtime hours)
Total output/total labor hours
Scheduled hours x overtime hours
Actual volume + scheduled hours

The correct answer is: Actual volume/(actual scheduled hours + actual overtime hours)

The correct formula for productivity rate related to volume reflects the efficiency at which a workforce produces output, taking into account the actual volume produced and the total labor time available, which includes both scheduled hours and overtime. Using actual volume as the numerator allows for an accurate representation of the output achieved, while adding the actual scheduled hours and actual overtime hours in the denominator ensures that all labor hours contributing to that output are considered. This comprehensive view of the labor input is essential for understanding productivity, as it shows how effectively resources are being utilized to generate volume. In this case, the inclusion of both scheduled and overtime hours captures the full spectrum of work hours that contributed to the production, making this formula a practical tool for calculating productivity in various operations, including those at Amazon.