Manufacturing economics — Are cost and availability of raw/processed materials and purchased components major factors that directly influence manufacturing feasibility and planning?

Introduction / Context:
Manufacturing converts design intent into physical products. Material economics—price trends, supply stability, lead times, and minimum order quantities—directly shape process selection, scheduling, and risk mitigation strategies such as dual sourcing and buffer stocks.

Given Data / Assumptions:

• Statement: cost and availability of materials/components are major concerns.
• Scope: both raw materials (metals, polymers) and purchased subassemblies (bearings, electronics).
• Objective: ensure continuous, cost-effective production that meets quality and delivery targets.

Concept / Approach:
Material selection links to performance and cost. Fluctuations in price or supply can negate savings from process efficiency. Availability affects make/buy decisions, safety stock, and design for substitution. Procurement and engineering coordinate to qualify alternates and manage risk with approved vendor lists and standardized parts.

Step-by-Step Solution:
1) Estimate material consumption and variability.2) Evaluate suppliers for capacity, quality, and logistics.3) Incorporate cost/availability into process and lot-size decisions.4) Design for alternate materials/components where feasible.

Verification / Alternative check:
Case studies from supply disruptions (e.g., commodity spikes, geopolitical events) show direct impacts on throughput and margins. Firms that integrate supply risk early fare better than those that treat it as an afterthought.

Why Other Options Are Wrong:

• Incorrect: Ignores real constraints faced by production.
• Only small-scale / Irrelevant if design optimal / Secondary to tooling: All misjudge the centrality of material flow and cost.

Common Pitfalls:
Over-custom parts that lock into single suppliers; ignoring lifecycle price volatility; inadequate lead-time buffers; failing to consider recyclability or supply risk in early design.

Final Answer:
Correct