Yes. But in some cases the waste will be avoided by not doing a production run at all if the minimum production quantity is too high and the law prohibits destroying the unwanted product.
I just don't get how it is cheaper in total to produce more units and throw them away.
If you make more units, it's cheaper per unit. But doesn't it mean that waste is always a loss?
I just don't get how it is cheaper in total to produce more units and throw them away.
If you make more units, it's cheaper per unit. But doesn't it mean that waste is always a loss?