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Question 1 of 25

Production must keep its operating cost as low as possible this can be done in the following way/ways:

Make long production runs of relatively few production runs of relatively few products Fewer changeovers will be needed and specialized equipment can be used thus reducing the cost of making the product"

Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages

Manufacture only to customer order

Provide lowest distribution costs

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