Question

The main responsibility of operation managers is to manage the three stagers of production from__________

Answer 1

Operation managers must efficiently manage the three stages of production, ensuring that the number of workers hired is optimal to maximize output and minimize costs, particularly avoiding Stage 3, where too many workers lead to negative returns.

Step-by-step explanation:

The main responsibility of operation managers is to manage the three stages of production efficiently. In the context of production, these stages include:

1. Stage 1: Increasing returns, where not enough workers are hired to use all the machinery effectively, resulting in the need for additional labor to increase total output.
2. Stage 2: Optimal production, where the number of workers is just right, each additional worker adds more to total output than the worker before, achieving the highest output for the least cost.
3. Stage 3: Negative returns, a point at which hiring more workers results in a decrease in total factory output because the additional workers begin to get in each other's way.

In managing these stages, operation managers must calculate the cost of adding each new worker to determine the exact number needed, aiming to produce at Stage 2 for the least amount of money.