Iso Cost Notes: Definitions & Explanations PDF | Download eBooks

Study Iso Cost lecture notes PDF with supply chain management definitions and explanation to study “What is Iso-cost?”. Study iso cost explanation with SCM terms to review supply chain management course for online MBA programs.

Iso Cost Notes:

Iso-cost speak to the costs of variables. An iso-cost line graphically speaks to every one of the mixes of the sources of info which the firm can accomplish with a given spending plan for creation or given expense. Assume the firm has 100 Rs. which it can spend on mixes of factor X and factor Y, the previous valued at Rs. 10 for every unit and the last estimated at Rs. 20. The firm can spend the whole sum on factor X or factor Y. Further, there will be different blends of the two elements which add up to the expense. The iso-cost line speaks to every one of these blends. Q1, Q2 and Q3 are three distinctive isocosts. The isocost on the privilege speaks to a higher expense. Isocosts and Isoquants can together assistance us to decide the ideal creation for a firm. We can accomplish generation enhancement in two different ways. It is possible that we can boost the creation for a given expense or we can limit the expense of delivering a given degree of yield.

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