| Abstract: | In a batch industry the characteristics of an establishment's output (scale, batch size, product dimensions) are critical determinants of the least-cost technique. In bolt and nut manufacture the least-cost technique draws selectively on different technologies for different parts of the product mix. Sensitivity analysis suggests that factor prices alone are relatively unimportant in determining the least-cost solution. Three technologies widely used in engineering industries - machining, hot forging and cold forming - are considered at four scales of output for a specified product mix comprising bolts and nuts conforming to an international standard. (For each technology a range of different machines is included.) |
