footbag on 07 March 2007
erm ummmmm.......actually the more they produce the cheaper it is to make them..........thus the beauty of mass production....
This is usually true, but when referring to a new product that requires specific parts that are not readily available on the market; there are other considerations. In manufacturing, productivity levels also has a lot to do with manufacturing costs. Opperating a factory at 50% efficiency is less expensive to operate it at max efficiency. In the end, they only want to produce the amount they can sell immediately, because future part prices may come down.
This is a newer approach to production called Just in Time inventory. It is very effective at cutting costs and is used by nearly all manufacturers today.