The Savings That a Large Company Can Enjoy from Producing

question 17

Multiple Choice

The savings that a large company can enjoy from producing goods in high volume,that are not available to a small company is called:

• A)economies of scale.
• B)horizontal integration.
• C)vertical integration.
• D)economies of scope.

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Definitions:

Workcenter

A specific physical area in a manufacturing facility where related tasks or operations are performed, often involving particular machines or equipment.

Fixed Layout

A type of production facility setup where equipment, machinery, and workstations are positioned in fixed locations due to the large size or immobility of those items.

Offshoring

The relocation of a company's business process or manufacturing to another country to reduce costs or explore new market opportunities.

Contract Manufacturer

A company hired to produce goods on behalf of another organization, providing specialized manufacturing services.