Why has industry historically produced in large lots?
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Why has industry historically produced in large lots?
a. marketing prefers large lots, and marketing is generally powerful
b. Interest is a dominant component of carry cost, which makes large lots economical
c. Setup time has been typically considered as a given, not easy to change
d. Industry has had a preference for fewer models, and therefore larger quantities per year and larger lots per order make sense.
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Solution Summary
Why has industry historically produced in larger lots are determined. The interest in dominant components of carrying costs are determined.
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D) Industry has had a preference for fewer models, and ...
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