Editing Real options valuation (section)

===Options relating to project operation===
Management may have flexibility relating to the product produced and/or the [[Manufacturing process management|process used in manufacture]].  As in the preceding cases, this flexibility increases the value of the project, corresponding in turn, to the "premium" paid for the real option.
*'''Output mix options''': The option to produce different outputs from the same facility is known as an output mix option or '''product flexibility'''. These options are particularly valuable in industries where demand is volatile or where quantities demanded in total for a particular good are typically low, and management would wish to change to a different product quickly if required.
*'''Input mix options''': An input mix option&nbsp;– '''process flexibility'''&nbsp;– allows management to use different inputs to produce the same output as appropriate.  For example, a farmer will value the option to switch between various feed sources, preferring to use the cheapest acceptable alternative.  An [[electric utility]], for example, may have the option to switch between various fuel sources to produce electricity, and therefore a flexible plant, although more expensive may actually be more valuable.
*'''Operating scale options''': Management may have the option to change the output rate per unit of time or to change the total length of production run time, for example in response to market conditions. These options are also known as '''[[Intensity option]]s'''.