Question

How might automation affect the price consumers pay for the product?

Answer 1

Automation of business process and procedure indirectly affects the price consumers pay for product and service in following manner-

• Through automation a company can produce goods at lower costs than manual business procedure.

• Automation reduces number of workers, which reduce labor and salary cost of an organization.

• Automation provides shorter lead times, quicker delivery and more efficient use of inventory flow.

• Automation makes easy to a business process which leads to significant economies of scale.

These are factors indirectly reduce costs and prices of product, so consumer require to pay less for product and service