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ACCA Applied Knowledge · Business and Technology · Technological factors

Orla Foods uses 3D printing to make customised packaging in small batches for individual customers at almost the same unit cost as large runs. Which strategic consequence is MOST directly supported by this technology?

The technology supports mass customisation: tailored products can be made in small batches at close to mass-production unit cost. Long production runs are no longer essential, inventory is not wholly eliminated, and design and innovation become more, not less, important.

  1. AMass customisation, where tailored products are offered without a large cost penaltyCorrect
  2. BCost leadership achieved solely through very long production runs
  3. CElimination of all inventory requirements
  4. DA reduction in the importance of design and innovation

Explanation

If small batches cost about the same per unit as large ones, tailored products can be offered economically, which is mass customisation. Long runs are no longer needed for low cost, inventory is not necessarily eliminated, and design becomes more important, not less.

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