IBUS2301 Study Guide - Final Guide: Supply Chain
Document Summary
Supply chain, production and logistics: production: activities involved in creating a product. Add value by better serving customer needs: dispersing production activities to various locations around globe where each activity can be performed most efficiently can lower costs. Increased quality by eliminating defective products from supply chain and manufacturing process. Where to produce 3 factors to consider. Technological factors: three characteristics of manufacturing technology are of interest in choosing location for production: level of fixed costs. Minimum efficient scale flexibility: concentrating production at a few choice locations makes sense when: fixed costs are substantial. The minimum efficient scale of production is high flexible manufacturing technologies are available. Both fixed costs and the minimum efficient scale of production are relatively low. Appropriate flexible manufacturing technologies are not available. Two product factors affect location decisions: produ(cid:272)t"s value-to-weight ratio. High = practical to produce in single location and export to other parts of the world.
