Question

Question: What difference does it make if a customer wants a 10,000-unit order produced and delivered at once or in 2,500-unit batches?

Short answer

Answer

The learning curve becomes better.

Step-by-step solution

Introduction

As the learning curve in retail spreads, we may anticipate better-looking, more ordered product displays, fewer mistakes due to inexperience, and increased sales. All of these factors combine to create a more productive company with workers who are happy with their work.

If a customer needs a 10,000-unit order made or delivered all at once or in batches of 2,500 units

Although the learning curve is an effect that happens everywhere, its shape has many changes. For instance, there are large variances in the level at which a curve starts (i.e., the cost of the first unit). The various levels of product complexities are the sole source of this.

The slope of the curve is typical of a wide range of experience, though. Further research revealed that while slopes for activities with roughly the same labor content ratios are quite frequent, other processes have different features and matching slopes of curves.

Each time a few of the 2,500-unit orders are generated, new learning is surely required in addition to the expenditures of re-setup. This would require more time, materials, and other resources to complete. Producing the complete 10,000-unit order and merely delivering 2,500 units at a time to the customer would be more advantageous and less expensive (at least in the learning curve).