When Developing the Operations Strategy for a New Manufacturing Organization

question 64

Multiple Choice

When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it

• A) requires minimal capital investment
• B) utilizes as much automation as possible
• C) utilizes an equal balance of labor and automation
• D) supports the overall competitive strategy of the company
• E) none of the above

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers wish to buy at each price level.

Output

The quantity of goods or services produced by a firm, industry, or economy in a given period.

X-inefficiency

X-inefficiency occurs when a firm produces outputs at higher costs than is necessary, often due to a lack of competitive pressure or motivation.

Economies of Scale

Reductions in the average cost of production as the volume of production increases.