4.3

Question 1

define scales of production

Answer 1

quantity of product needed to be produced

Question 2

economies of scale

Answer 2

cost advantages that come from higher production runs:
1 spreading fixed costs – more units then costs are spread out
2 bulk discounts – suppliers can offer lower prices per unit when buying in bulk
3 specialisation and efficiency – production is longer –> specialisaiton of labour can happen

Question 3

production scales

Answer 3

1 one off – single unique product/prototype
2 batch – set number of units is produced, when they are sold out, there are no more until another batch is ordered
3 mass – a form of continuous flow ptodction. large amounts of standardised products w little redesigning. very high rates of production
4 continuous flow – highly automated production method used to create materials without interruption. maximises production and reduces costs
5 mass customisation – computer aided manufacturing allows to combine low unit costs of mass production w individual customisation