The model stock plan

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Monograph

Identifikator:: 1820833348

URN:: urn:nbn:de:zbw-retromon-210730

Document type:: Monograph

Author:: Filene, Edward A. http://d-nb.info/gnd/123562244

Title:: The model stock plan

Place of publication:: New York

Publisher:: McGraw-Hill Book Company

Year of publication:: 1930

Scope:: xiv, 253 Seiten

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. Helping producers eliminate waste

Collection:: Economics Books

204 THE MODEL STOCK PLAN we are entitled to better than busy-season values on these orders, for they permit the economies of slack-season manu- facturing. Most successful producers are glad to cooperate with their customers to induce them to place orders for sub- stantial quantities of goods to be manufactured at a slack time at a lower price. They see their opportunity for increas- ing their own total profits by accepting such an order. They recognize that it involves the same principle under which they, themselves, are able to buy electricity from a central station on its comparatively low industrial rates set to keep the electric company’s generating plants and its distribution lines earning revenue during the day’slow demand time, before the evening’s peak demand for lighting purposes has set in. Of course, the closer a manufacturer can come to keeping his plant busy every day in the year the lower will be his overhead expense per unit produced. He has his plant and equipment, and a certain proportion of his people which must be kept on the payroll whether or not there is enough for them to do. Moreover, by laying off his factory force he loses the advan- tage of their training in his particular work, for he can seldom hope to hire them all back when work picks up. If he is able to give them year-round work, or something pretty close to it, he gets the pick of the workers available and keeps the people he has trained to his special needs. Moreover, people who have good steady jobs are less likely to cause labor troubles. By using the Model Stock Plan, and particularly its buying and selling calendars, we can help a desirable resource to eliminate wastes and increase his total profits by giving him orders, especially for staples, which he can manufacture in his slack season. On some types of goods we can give him orders with no specified delivery dates, permitting him to deliver at his convenience any time within the term of the contract. Our share of the wastes, which he eliminates by our cooperation, he will, naturally, be able to give to us in lower prices on these goods. In fact, it is largely the low price that makes it pay us to buy at an off season. There is plenty of experience to show

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