It depends on;
Nature of product
Size of market
Demand needs
Productive capacity
Nature of product
Certain product is most suitably produced using Job production as they require customization, such as hearing aid. This is because each device needs to be carefully calibrated according to different hearing needs and ear size.
Size of market
Some products have small or niche markets. As such, mass production of these goods will only create waste. Products like this are much suited using batch or job
production, where more variety can be produced in smaller quantity to fulfil specific market needs.
Demand needs
Products with high demand are most suitable using flow production, as it specializes in producing a similar and standard output continuously. Example goods are food and petrol that are basic needs that are constantly in demand.
Productive capacity
With more advance technology, productive capacity continues to increase as automation and artificial intelligence enables better quality products to be produced in various amount. The technology available and cost for each production method determines which production method is a better option.
RELATED CONCEPTS
Cost
Production methods
Technology
PAST YEAR EXAM QUESTIONS
Do you think a business should change its method of production? Justify your answer. (6 marks) Oct/Nov 18/11
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