2.1 production

A company's reserves of raw materials, parts, work in process. and finished products

• inventory

• component

• capacity

• plant

The (maximum) rate of output that can be achieved from a production process

• inventory

• component

• capacity

• plant

Any of the pieces or parts that make up a product or machine

• inventory

• component

• capacity

• plant

A collective word for all the buildings, machines, equipment, and other facilities used in the production process

• inventory

• component

• capacity

• plant

The geographical situation of a factory or other facilities

• Location

• supply chain

• Outsourcing

• economies of scale

The cost savings arising from large-scale production

Ex: As production volume increases, you get economies of scale.

• Location

• supply chain

• Outsourcing

• economies of scale

Buying products or processed materials from other companies rather than manufacturing them

• Location

• supply chain

• Outsourcing

• economies of scale

A network of organizations involved in producing and delivering goods or a service

• Location

• supply chain

• Outsourcing

• economies of scale

the time needed to perform an activity such as manufacturing a product or delivering it to a customer

Ex: a long lead may allow competitors to enter the market

If lead time increases, customers may go to other suppliers.

• lead time

• Stipulate (v)

• Depreciation

• embedded

to arrange specifically; to require as a condition of agreement

• lead time

• Stipulate (v)

• Depreciation

• embedded