
9.2 Overview
■
363
Cost to manufacture and
ship 1 car
Production line steady state volume (cars/day)
1
1200
0
10,000
Figure 9.13 A nonlinear production cost curve.
to assemble, paint, and ship 1,000,000 cars? Both of these questions
involve a nonlinear system. The cost of setup, labor, electricity, and
other factors means that producing a single car (or any small number of
cars) is far more expensive than a large number of cars in a production
system. Figure 9.13 illustrates this nonlinear relationship between cost
and production line volume.
The plateau regions in the function are generally related to the cost
of energy and materials that often have quantity-based ...