Which of the following can be considered a drawback of large-scale production?

Study for the WGU BUS2740 D464 Managing Operations Test with well-structured questions and detailed explanations. Prepare thoroughly and ensure your operational management knowledge is robust!

Large-scale production is often associated with certain benefits, such as improved economies of scale and lower production costs due to the mass production of goods. However, it also comes with significant drawbacks, including reduced flexibility in adapting to market changes.

When a company adopts large-scale production, it typically standardizes its operations and processes to achieve efficiency and cost-effectiveness. This standardization can make it challenging for the company to adjust quickly to shifts in consumer preferences, market demands, or emerging trends. As a result, the organization may find itself constrained in its ability to innovate or adapt its product offerings, leading to potential loss of market share if competitors are able to adjust more rapidly.

While higher investment in technology can also be a consideration, it is often a necessary step for large-scale production to achieve the benefits of efficiency. However, the key issue here is the inherent trade-off between mass production capabilities and the ability to nimbly respond to changes in the marketplace. Thus, the correct answer highlights a significant operational challenge that businesses face as they scale up production.

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