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Terry
0450-19-O-N-12-4d
Chan
TOPIC QUESTION - PAPER 1
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Chan
June 15, 2021 at 7:48:34 AM
Oct/Nov 2019
Version 2
4.0 Operations Management
4.2 Costs, Scale of Production and Break-Even Analysis
YOUR ANSWER
Diseconomies of scale 1: Management diseconomies
Explanation: Having operations in 18 countries may slow decision-making due to poor communication with different time zones
Diseconomy of scale 2: Labour diseconomies
Explanation: NBV workers may be demotivated from repetitive task, as NBV is labour-intensive with a 400,000 workforce.
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