Question

Which of the following process types is the best fit for producing high volumes of a commodity liquid detergent?

1) Batch process
2) Continuous process
3) Job shop process
4) Project process

Answer 1

The best fit for producing high volumes of liquid detergent is a continuous flow or mass production process, not a project process. This approach enables large-scale, homogenous output and cost efficiency, aligning with strategies of major producers that seek to control the market and minimize costs.

Step-by-step explanation:

For producing high volumes of a commodity like liquid detergent, the project process is not the best fit. Instead, a continuous flow process or a mass production process is typically used for such requirements. These processes are designed for large-scale production where the output is homogenous and production runs 24/7, ensuring a high volume of product with consistent quality and lower costs per unit.

In the context of detergent production mentioned involving Proctor & Gamble, Henkel, Unilever, and Colgate-Palmolive, economies of scale are crucial. The goal was to stamp out competition and control prices, which aligns with the strategy of maximizing output and minimizing costs through efficient production processes. Selecting production technology 3, as this technology offers the lowest total cost, would likely be the best strategic choice as it implies a shift towards more automated and less labor-intensive production in line with achieving the required economies of scale.