Lori produces “Final Exam Care Packages” for resale by her sorority

1. Lori produces “Final Exam Care Packages” for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages.

a) What is Lori’s Productivity?
b) Lori thinks that by redesigning the package, she can increase her total productivity to 133 care packages per day. What will be her new productivity?
c) What will be the percentage increase in productivity if Lori makes the change?

2. Identify how changes in the external environment affect the OM strategy for a company. For Instance, discuss what impact the following external factors might have on OM strategy:
a) Major increases in oil prices.
b) Water and Air Quality legislation
c) Fewer young prospective employees entering the labour market
d) Inflation versus stable prices
e) Legislation moving health insurance from a pre-tax benefit to taxable income