How do we decide?...

How do we decide HOW to produce?

After deciding on what to produce, businesses have to know how to produce them.

• What machinery will they need?
• How much manpower is required? Will there be any professionals that need to be hired?
• What kind of production method will be used?
• How much is needed to be produced? How many products can be kept? How long can these products be kept? Will there be a balance of inflow and outflow of products to the warehouse?

Example:

A company would like to produce palm oil to sell in Malaysia. First, they would have to buy a plot of land that is suitable for planting palm trees. Then they would have to investigate the most effective techniques to gain the most out of these palm oil. After investigation, a factory would need to be constructed to process the raw materials into goods to be sold. When everything has been set up, the company would then need to hire workers to work in the plantations and factories, as well as people who are experts in this field to supervise the entire production. 

The method of production would also then have to be considered. As oil is quite a necessity in the consumers' life, a lot of oil would need to be supplied to meet the demands of consumers. Therefore mass production would used as the production method, where workers work on specific tasks each (from the plantation, to processing the raw materials, to packaging the product)

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How do we decided WHEN to produce?

Sometimes, products can be produced all year round as the demand would be quite consistent (such as food, technological devices etc.)

However, some products must be produced according to the season or festivals around that time. (e.g. clothes) For example, during Chinese New Year, clothes factories would usually produce more Chinese traditional clothes; during Hari Raya, more traditional Malay clothes would be produced; during Deepavali more traditional Indian clothes would be produced. Not just clothes, but other accessories like ornaments, red packets and many more. (e.g. Christmas trees and decorations during Christmas). 

No business would produce products for a different season, as no consumers would buy them and the business would suffer a great loss.