Practical limits to economies of scale


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Question 1) What are some practical limits to economies of scale? What is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances? Why would a business maintain a capacity cushion?

Question 2) Is it possible to achieve zero inventories? Why or why not? Why does JIT manufacturing require a stable schedule? What are some technological advances that support the goals of JIT? Will JIT work in service environments? Why or why not?

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