• Look at the meeting notes below． • Some information is missing． • Y

F：What do you think is the cause of the output reduction in summer?
M：Well，due to high replacement rate and low efficiency from fill-in workers，we just don’t make as many bicycle
frames as we do during the rest of the year．  
F：Where does the high replacement rate come from?
M：Good question．Both the high replacement rate and low efficiency are because of the extreme heat in the workshop．The average temperatures inside the workshop are 6℃ over the outside tempera tures．During the summer，when work starts at 8：00，it’s already 31℃ in the workshop．By 11：30， it’s at least 37℃．On six days last summer．it hit 41℃．  
F：That’s hot!
M：Yes．And as you know，these workers are always working on，moving or carrying bicycle frames，which weigh as
much as 8 kilos．When temperatures are 35℃，they slow down．When they feel it’s too hard to put up with，they quit．  
F：How many was it again?
M：Well，this summer we have already changed 11 of the 36 employees in the workshop．Replacement rate for the whole
summer will usually run over 50%．When someone quits，it takes an average of five days to find and train a fill-in worker．During that time，the trainee produces nothing．For another five days，the new person can work at only about half
speed．According to my calculations，we are producing 12，300 less units per summer than we would without this replacement rate．  
F：Is it really that much?
M：Yes，and figuring a profit of $16 on every bike we sell，those 12，300 products we aren’t making are costing us 196，800 dollars in potential earnings.