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round-about production

created by SwamiBooba

(idea) by SwamiBooba (1.1 y) (print)   ?   (I like it!) 1 C! Thu Dec 13 2001 at 6:29:24

the concept that, in order for efficiency to rise, it must fall:




                                 /---------------
                                /
             ----------        /
                       \      /
                        \    /
                         \  /
                          \/

For example, a grocery store plans to expand not only its floor space but also its offerings. However, during the expansion, goods are moved around, and shoppers have trouble finding what they want - and as the "having no price tag dilemma" can attest, the shopper will forgo the product for what they can find.

A businessman can cause a significant loss of revenue and develop severe inefficiency of their resources by not planning with round-about production in mind. If the grocery store owner decides instead to eliminate floor space, this could happen:



                               
                                
             ----------        
                       \      
                        \     
                         \  
                          \
                           \
                            \
                             \
                              X CRASHANDBURN!

That's probably not what the owner intended - he probably just wanted to save some money.


printable version
chaos

efficiency grocery store Having gotten myself into a position where I can have my cake and eat it too, I feel no compulsion to get up from the table price tag
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