Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain.

Question

Quizplus · Accepted Answer

This is because cost reduction in one area of the value chain may negatively impact another area, and optimizing the entire value chain is necessary for overall cost control. For example, increasing production speed may lead to lower quality products or higher maintenance costs.

Controlling Costs Across the Whole Value Chain Often Requires a Trade-Off