The Increase in Total Productivity - Essay Example

The company can have various logistical choices and this helps it save money and goods get to reach the customers faster since you can employ direct shipment where goods are shipped directly from the supplier to the customer without passing through any other middleman.

2. Another measure to increase productivity at the EBBD would be to increase labor productivity. This can be calculated as the output per worker per hour in a given economy. Labor productivity is equal to the ratio between a volume measure of output (gross domestic product or gross value added) and a measure of input use (the total number of hours worked or total employment) labor productivity = volume measure of output/measure of input use
The volume measure of output=the goods and services produced by the workforce (The gross domestic product).
The measure of input=use reflects the time, effort, and skills of the workforce
The total number of employed people cannot be used to indicate productivity. To increase total productivity it would mean increasing the productivity of each labor unit. This is by increasing the skill of each labor unit operating within the EBBD by increasing the skill and professionalism of each unit. Ultimately this increases the total output of each individual by using less time for each output, this increases the overall output of the firm.
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