Operations Management

What are economies of scale?

• Cost advantages achieved through producing on a medium scale

• Cost advantages achieved through producing on a smaller scale

• Cost advantages achieved through producing on a larger scale

• Cost disadvantages achieved through producing on a larger scale

What are diseconomies of scale?

• Decrease in costs per unit of output as a company grows

• No change in costs per unit of output as a company grows

• Increase in revenue per unit of output as a company grows

• Increase in costs per unit of output as a company grows

Define needs in the context of operations management.

• Requirements or demands of customers or stakeholders

• Resources or materials required for production

• Goals or objectives of the organization

• Procedures or processes for completing tasks

Define wants in the context of operations management.

• Goals or objectives of customers or stakeholders

• Demands or expectations of customers or stakeholders

• Desires or preferences of customers or stakeholders

• Needs or requirements of customers or stakeholders

What are the advantages of economies of scale?

• Increased efficiency, higher production costs, reduced bargaining power with suppliers, and lower profit margins.

• Higher production costs, decreased efficiency, reduced bargaining power with suppliers, and lower profit margins.

• Decreased efficiency, higher production costs, reduced bargaining power with suppliers, and lower profit margins.

• Lower production costs, increased efficiency, improved bargaining power with suppliers, and higher profit margins.

What are the disadvantages of diseconomies of scale?

• Higher costs, decreased efficiency, and difficulty in managing a larger organization.

• Increased productivity, reduced costs, and improved competitiveness.

• Improved efficiency, lower costs, and easier management.

• Decreased productivity, increased costs, and reduced competitiveness.

How can economies of scale be achieved?

• Increasing production volume

• Decreasing market share

• Reducing production volume

• Increasing production costs

How can diseconomies of scale be avoided?

• Increasing production volume, hiring more employees, and expanding facilities.

• Reducing the size of the organization, cutting costs, and downsizing operations.

• Implementing outdated technology, relying on manual processes, and neglecting employee training.

• Implementing efficient management practices, streamlining operations, and investing in technology and automation.

Differentiate between needs and wants in operations management.

• Needs and wants are the same in operations management

• Needs are non-essential requirements, wants are desires

• Needs are desires, wants are essential requirements

• Needs are essential requirements, wants are desires

Provide examples of needs and wants in operations management.