Re:The Use of Knowledge in Society (1945) [pdf]
by DiscourseFan on Wednesday October 30, 2024 @02:26AM
(#41992329)
Yes but the standardization of inputs and the optimization of revenue present us with a market rather than a more free form of creative development. The kind of production that such standardization allows is extremely limited formally.
That's a manufacturing planning system. Each product has a bill of materials, and all those parts have to be present before the product is assembled. Factories which make many similar products either have to have very good systems to get all the parts in the right place at the right time, or carry excessive inventories. It's not a market-based system. The main goal is minimizing stalls, where production stops due to lack of a part. The cost of stalls usually dominates the cost of the parts, because revenue is zero until the product is complete.