last year I asked How do we estimate production functions?. That answer provided was insightful from an econometric perspective and has helped me in applying such an understanding to the workplace.
Right now Im doing some consulting by a small medical sales business and they wanted me to do a workforce evaluation of their sales staff, and they wanted to know if they should expand their workforce. The numbers they are giving me are on a monthly basis, they did not provide me with numbers of what their revenues are but they have given me quantities like the table below. (Note the numbers provided are fictitious).
\begin{array}{c|lcr|} n & \text{Sales}&\text{Staff}{} \\ \hline 1 &103& 10\\ 2 &234& 10\\ 3&88&9\\ 4 &115& 8 \\ 5&63&9\\ 6&91&10\\ 7&130&10\\ 8&168&9\\ ...&...&...\\ \end{array}
We know mathematically a production function provide us with a single value, however as we can see from this table, the quantities produced by the input above differs by time and period.
How does one model such inconsistencies in production where the exact yield from inputs are not specific.
