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 . Each labor hour cost 4 USD per day with a total overhead cost becoming now 300 USD
· What is labor productivity before and after the implementation of JIT strategy? Was the strategy effective while considering labor hour factor?
· What is the productivity before and after the implementation of JIT strategy while considering both cost and labor wage factors? Was the strategy still effective in this consideration?
