|
More automation allows factories and plants to be more scalable.
Salaries are fixed costs. - The company has to pay that whether they produce 1 product or 1,000,000 products.
Automation is a variable cost. You can turn the machine off and not pay a dime if your orders are small.
Also, automated supply chains and inventory tracking decrease inventory costs.
If you are in college, those answers are simply not good enough. If you are in high school, the teacher will probably put a star on your paper.
To be honest, those are economic questions from about 10 - 15 years ago.
I would be glad to help you expand you answers if you think that is necessary.
|