Special-purpose equipment is generally difficult for small manufacturers to use unless
A) the plant has mostly short production runs.
B) the plant produces a standardized product in a large enough volume.
C) the plant is set up in a process layout.
D) the plant can be used for multiple purposes.

Question

Quizplus · Accepted Answer

Small manufacturers may not have the resources or capacity to invest in specialized equipment that can only be used for a limited range of products or processes. However, if the plant produces a standardized product in large enough volumes, it may be worthwhile to invest in special-purpose equipment to improve efficiency and reduce costs. This also helps to ensure that the cost of the equipment can be spread out over a larger number of units, making it more financially feasible.

Special-Purpose Equipment Is Generally Difficult for Small Manufacturers to Use