Question

What is the difference between minimum total cost and short-range profit maximization policies in system design?

Answer 1

Minimum total cost policies	Short-range profit maximization policies
1. Policies that helps the organization to minimize the cost of the production in system design.	1. Policies that helps the organization to maximize the profit in short range .
2. It includes using the resources efficiently and choosing the best combination of inputs.	2.To design the product in such a way that it can reach broder market in short range to earn profits.
3. Formulating the policies that will minimize the financial expenditures of the busienss.	3.Deciding about the price of the product that will derive maximum profit to the business.
4. Employees should work efficiently and the policy of efficient time utilization should be formulated.	4. Employees should be selected according to their work perference in which sector they are good at to get maximum use of their abilities.
5. Various virtual technology should be used to minimize the cost of the production.	5. Employees and administrative activities should be regularly monitered.