Question

the goal of mass production strategy is to:
○ a. avoid overproduction by holding limited inventory of raw materials.
○ b. produce just enough of the final product to satisfy actual orders.
○ c. produce small quantities of customized goods and services that precisely meet the needs of specific customers.
○ d. achieve reductions in average cost by taking advantage of specialization and the efficient use of capital.

Explanation:

Mass production focuses on producing large quantities of standardized products. By using specialization (dividing tasks for efficiency) and efficiently using capital (equipment, facilities), it aims to lower the average cost per unit (economies of scale). Option a describes a just - in - time or lean inventory approach, not mass production. Option b is related to a make - to - order strategy. Option c is about customization (like in a job - shop or craft production), while mass production is about standardization and large - scale production to reduce costs.

Answer:

d. achieve reductions in average cost by taking advantage of specialization and the efficient use of capital.