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Long/short production runs

Mmansoor9y ago
in the product life cycle, there are 'long production runs' and short production runs. can you please explain what exactly is meant by long/short runs? thank you.
kengarrettkengarrettTutor9y ago#1
A long production run is when many units can be made once the oroduction line is set up. In short production runs, relatively few items can be made for one set-up. Set-ups cost money And the longer the production run the more efficient and the cheaper per unit because set-up costs are spread over many items. When talking about life cycles, the term 'long production run' is likely to mean something slightly different. A long life cycle can mean a long production meaning that the factory can be used for many years and so the cost per unit will be low. A short life cycle means fewer units will be made so unit costs will be higher.
Mmansoor9y ago#2
wow..cool..thank u!
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