A company wants to concentrate its production facilities in one centralized location when it wants to reduce production time, increase quality control, and increase machinery utilization.
What is production in a centralized location?
It corresponds to a strategy to increase production efficiency, through faster production, increasing the flow and sharing of production resources, the use of equipment, generating economies of scale and greater production efficiency.
Generally, a production in a centralized location helps to maintain the efficient service of a constant local demand, because the centralization contributes to the optimization of productivity.
Therefore, centralized production increases product quality, market assessment, compliance with legal requirements and cost reduction.
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