19. The food production on a cruise liner is
Centralized
De-centralized
Answers
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Explanation:
A decentralized manufacturing company has multiple facilities that cover large areas, allowing products to be manufactured and distributed close to customers.
In the highly competitive global market of today, the need to provide highly customized products is causing companies to rethink their manufacturing strategies. With the emergence of new manufacturing technology, companies of all sizes can adapt in order to succeed and the decision for some to migrate from centralized manufacturing to decentralized plants is critical to that success.
Regardless of how companies grow and adapt their supply chain, cloud-based ERP systems are there to facilitate the transition.
Centralized Manufacturing
A single factory can dramatically reduce per unit production costs by using the same equipment to produce different products, allowing the company to achieve economies of scale. Research from the nonprofit organization APQC shows that centralized organizations have manufacturing costs that are about 3 percent lower than decentralized companies. For an organization with $5 billion in annual revenue, this is a difference of $150 million. APQC’s research also shows that raw material inventory turn rates and production schedule efficiency is higher in companies with centralized manufacturing.
Centralized manufacturing can also enable better forecasting, more local jobs, consistent production and more effective use of limited resources. The cost of materials may also be lower for centralized manufacturing sites that are located near the source of those materials.