Term Paper-Advantages and disadvantages to both centralizing and decentralizing,
There are advantages and disadvantages to both centralizing and decentralizing, but probably one of the biggest flaws with decentralizing is that it will building multiple manufacturing plants.
This will mean high startup costs that may not pay dividends for a decade a two, which in the electronic world is to long. The reason is that technology is constantly evolving and these processors could potentially be out of date after a year or two.
Centralized manufacturing is a single factory that can benefit from per unit costs due to the factory being able to use the same equipment to produce several different products . This will benefit this company for they will be able to produce several different processors all at one shop. When deciding on a location companies need to look at overall costs, which include start up, wages, taxes, and currency depreciation. Places like Mexico and China fit these bills. China would be the ideal spot though because compared to Mexico their crime rate is drastically lower
