1. Discuss 5 critical factors that manufacturing firms should consider when designing a facility that can lead to their maximizing production flow and minimizing cost investments.
2. CharmingBells Inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down because it has invested millions of dollars’ worth of equipment which can only be used in that industry. Moreover, the people in CharmingBells Inc. have become emotionally attached to the company and do not want the company completely shut down. This scenario best illustrates _____.?
High fixed cost?
High exit barriers?
used production capacity?
unused production capacity?