B8. The following appeared in a presentation by the chief production manager of a machine parts manufacturing company at a management meeting:
“Our factory in Cookville is our most advanced and efficient. It is capable of producing ten drill bits for each dollar of production costs, whereas none of our other factories can produce more than seven drill bits per dollar of production costs. Therefore, we can reduce our overall drill bit production costs by devoting the Cookville factory entirely to drill bit production. Since reducing the production costs of individual machine parts is the only way to achieve our larger goal of reducing our overall production costs, dedicating the Cookville factory entirely to drill bit production and shifting all other machine part production to our other factories will help us to attain that larger goal.”
那个不够清楚啦,有哪位NN可以帮忙再分析一下啊?谢谢谢谢
呵呵,我来试一下:
1. It ignores the possible increase on assembly costs by shifting all other parts production to other factories. i.e. 这个工厂也许需要把drill bit和其它东东组合起来。也就是说drill bits可能是part of a part.这么一来,over production cost 就可能会增加。
2. The transportation costs of Cookville might be significantly higher than other factories. In that case, even the production costs decrease, the overall manufacturing costs would increase.
3. reducing the production costs of individual machine parts is NOT the only way to achieve our larger goal of reducing our overall production costs. Costs can be reduced throught many other means such as better supply chain management, better resource utilization and so on.
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