Important Factors for Production Decision

Important Factors for Production Decision

Organization does not possess unlimited resources; it has to manage these resources effectively to maximize the profit. Therefore Important factor for production related decisions are

1.    Limited Machine Hours – Effective utilization

2.    Limited Labour Hours – Effective utilization

3.    Profit maximization

Organization would love to produce more profitable product, which can be easily sold in the market. Therefore, profit maximization cannot be sole factor for production related decisions, and market demand should also be given due consideration.