Question

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

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 .