Continuous processes typically run 24 hours a day,seven days a week because:
A)There is a need to spread their huge fixed cost over as large a volume as possible
B)Price is often the single most important factor in competing with their products
C)Facilities are a maze of pipes,conveyors,tanks,valves,vats,and bins
D)Both A and B

Question

Quizplus · Accepted Answer

Continuous processes typically involve huge fixed costs for infrastructure, equipment, and personnel. Running these processes 24 hours a day, seven days a week allows for the highest possible volume, thus spreading these fixed costs over a larger output. In addition, price competition is often important in industries that use continuous processes, as customers often seek the lowest cost options. Furthermore, the facilities involved in continuous processes are complex and require constant management and monitoring, which is facilitated by having the process run continuously. Therefore, both choices A and B are valid reasons for why continuous processes typically run nonstop.

Continuous Processes Typically Run 24 Hours a Day,seven Days a Week