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
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