How do flexible production systems promote customization at unit costs similar to mass production of standardized output? by reducing setup time for complex equipment by decreasing learning effects by eliminating the need for a marketing strategy by adding variable quality levels Why is establishing loyal customers and lowering defection rates as important as finding new customers? New customers will never replace loyal customers. New customers have higher fixed costs. New customers have lower cost structures. New customers are more kely to buy on credit. How can firms use the research and development function to lower costs and improve efficiency? by promoting self-managing teams during production by designing products that are easy to manufacture by eliminating supply chain issues by improving the inventory flow to promote IT inventory