The Cardboard Box Company (CBC) is a public limited company based in the West Midlands of...

  

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The Cardboard Box Company (CBC) is a public limited company based in the West Midlands of the UK. The company manufactures cardboard packaging, (mainly boxes), for companies who sell their goods online. CBC employs 80 production workers who operate the most technologically advanced equipment in the industry to produce the company's products and have recently introduced a Just-in-time (JIT) inventory management system. CBC's senior management have been concerned for some time about the level of labour productivity which, in 2021, fell for the second year running to a monthly average of 700 units per worker. In the first six months of 2022 the number of units produced by the workforce was 326,400, continuing the downward trend in labour productivity. The Human Resources Manager has surveyed the 12 workers who have left CBC during the past six months. The results of the survey are shown in the Table 1 below. Table 1:Survey of Production Workers Leaving in the past Six Months Number who replied Reason for leaving Higher pay Work at CBC was repetitive No prospects for promotion Lack of training (a) (b) (c) (d) 6 8 3 1 Explain one cost and one benefit to CBC of just-in-time inventory management. Using the information provided, calculate the average monthly labour productivity for the first six months of 2022. Using the information provided, calculate the labour turnover rate of production employees for the past six months of 2022. Evaluate ways CBC could use financial and non-financial incentives to improve its labour productivity rate. The Cardboard Box Company (CBC) is a public limited company based in the West Midlands of the UK. The company manufactures cardboard packaging, (mainly boxes), for companies who sell their goods online. CBC employs 80 production workers who operate the most technologically advanced equipment in the industry to produce the company's products and have recently introduced a Just-in-time (JIT) inventory management system. CBC's senior management have been concerned for some time about the level of labour productivity which, in 2021, fell for the second year running to a monthly average of 700 units per worker. In the first six months of 2022 the number of units produced by the workforce was 326,400, continuing the downward trend in labour productivity. The Human Resources Manager has surveyed the 12 workers who have left CBC during the past six months. The results of the survey are shown in the Table 1 below. Table 1:Survey of Production Workers Leaving in the past Six Months Number who replied Reason for leaving Higher pay Work at CBC was repetitive No prospects for promotion Lack of training (a) (b) (c) (d) 6 8 3 1 Explain one cost and one benefit to CBC of just-in-time inventory management. Using the information provided, calculate the average monthly labour productivity for the first six months of 2022. Using the information provided, calculate the labour turnover rate of production employees for the past six months of 2022. Evaluate ways CBC could use financial and non-financial incentives to improve its labour productivity rate.

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a Cost of Just in time inventory management is that Supply chain disruption as it affect the product... View the full answer