Project organizations may miss economies of scale available through the pooling of requests for materials with other projects.

Question

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By pooling requests for materials with other projects, project organizations can achieve economies of scale, such as volume discounts, reduced transportation costs, and better negotiation power with suppliers. Therefore, if a project organization fails to take advantage of such opportunities, it may incur higher costs and miss potential savings.

Project Organizations May Miss Economies of Scale Available Through the Pooling