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Which two advantages does a continuous process bring?
ALow per-unit costs and production that is easy to schedule
BHigh variety of output and very short production runs
CFrequent machine changes and small batch quantities
DIndividual tailoring of every unit that is produced
Answer & Solution
Correct answer: A. Low per-unit costs and production that is easy to schedule
1. A continuous process runs the same high-volume product for long stretches without stopping.
2. Fixed setup effort is therefore spread over a very large number of units, which drives per-unit costs down.
3. Because the run does not change, production is also easy to schedule.
4. Those two advantages are bought at the price of variety, since the process suits low-variety products with standardized parts.
5. Options B and C describe an intermittent process, which trades cost and simplicity for flexibility.
6. Option D describes customization, which no continuous process can deliver.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Production Timing_
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