Original Equipment Manufacturer - Economies of Scale

Economies of Scale

OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory.

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Famous quotes containing the word scale:

    I own I never really warmed
    To the reformer or reformed.
    And yet conversion has its place
    Not halfway down the scale of grace.
    Robert Frost (1874–1963)