Operations and Supply Chain Management
Operations and Supply Chain Management
14th Edition
ISBN: 9780078024023
Author: F. Robert Jacobs
Publisher: MCG
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Chapter 5, Problem 2DQ
Summary Introduction

To list: Some practical limits to economies of scale.

Economies of scale:

It is the proportionate reduction of cost of production by increasing the output of production. It normally happens in an organization when the production becomes efficient.

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1) View the video What is Operations Management  (14.01 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 1 and/or 2) after watching this video. (https://www.viddler.com/embed/d01189e1)       Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.       2) View the video What McDonald’s is serving up at its new CosMc’s Chain (3.42 mins, Ctrl+Click in the link), and answer the following questions: (https://www.youtube.com/watch?v=k7ojpUzE8q4)       i) From a strategic perspective, why do you think McDonald’s is opting for this new chain rather than trying to launch the new menu in its existing restaurants?   ii) What factors do you think in McDonald’s external and internal environments are driving its decision to open the CosMc’s locations?   iii) How do you think this format will improve McDonald’s profit margin as compared to its regular fast-food restaurants?       Note: As a…
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