2. Lori is a company that produces 1000 boxes per day recruiting 5 staff with overhead cost of 200 USD. Each worker's shift is 10 hours per day. Lori management decides to used JIT strategy to increase production to a total of 1200 boxes per day

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Business

Yasmine

19 October, 20:53

2. Lori is a company that produces 1000 boxes per day recruiting 5 staff with overhead cost of 200 USD. Each worker's shift is 10 hours per day. Lori management decides to used JIT strategy to increase production to a total of 1200 boxes per day

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Addison Hunter · Answer 1

JIT strategy stands for Just-in-time. The JIT strategy is used to increase efficiency and decrease waste by reducing inventory costs.

The labor productivity before the JIT strategy was

= output / labor hours = 1000 / (5*10) = 20 boxes per labor hour.

The labor productivity after JIT strategy was applied is:

= output / labor hours = 1200 / (5*10) = 24 boxes per labor hour.