ABSTRACT

A simple production system carries out all the activities of importing, converting, and exporting. Such a system is the one-man business in which the owner buys his own raw materials, directly controls manufacturing, and sells the products himself. Other typical simple systems are the primary work group on the factory floor, the small retail shop, and the small agency. The transition from a simple to a complex system may be brought about by diversification of import, by demands for diversification of export, or by difficulties leading to specialization in import, conversion, or export.