Flexible manufacturing permits the low-volume output of custom-tailored products at relatively low unit costs through economies of scope.

Question

Quizplus · Accepted Answer

Flexible manufacturing systems allow for customization of products without incurring high costs. This is achieved through economies of scope, where the same production resources can be used to produce a variety of products, thus reducing per unit costs.

Flexible Manufacturing Permits the Low-Volume Output of Custom-Tailored Products at Relatively