Cost Production Minimization
In figure 2 you can see a little girl working at an Indian weaving, cloth making factory, which shows that production cost can be minimized also by using child labour. This is another aspect I absolutely despise. Of course, it is economically profitable, but so many children lose their childhood whilst working in the clothing or food making, or any other industry, which needs more cheap labour.
Another way of production cost minimization is by buying resources needed for the product for a lower price according to how much the quantity needed is, for instance, wood, glue, nails, salt, etc. This can be improved by cooperating with manufacturers, or wholesalers. If they are either very close to the production place, or give quantity discounts, or offer other types of price cooperation devices, it is possible to minimize the cost on the production. If a salt supplier is very close to the factory, route expenses are smaller than if the salt has to be taken from a place across the country. Quantity discounts are very popular towards production factories, however, some companies tend to have contracts, which let certain companies cooperate in order to have loyal customers and constant, beneficial suppliers.
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