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Disadvantages of Product Layout - High Overhead charges
Due to heavy investment, the overhead fixed charges also tend to be high. A decline in demand for the product will render the equipment overcapitalized with unused capacity adding to the higher overhead costs.
Unless the demand can be accurately forecast well into the future and production capacity created only sufficient to satisfy this demand, firm under product layout frequently find themselves burdened with high fixed charges incident to large unused capacity.
Quantitative Layout Analysis - Load Distance Analysis Method Load distance analysis is useful in comparing alternative layouts to identify the one with the least product or ma
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After analyzing the three models, and comparing all three using a paired-t test, we found out that the results of the modifications to the base model were statistically significant
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