Decentralization always leads to fragmentation and reduction of production. Moreover, it deprives you of your freedom. Then the person is tied to their place of residence. Scientific institutions stop working and stagnation begins.
Let's start with the elementary things, or rather the freedom of movement. In a centralized country, and ideally under communism, the whole planet is free. A person can choose any place of residence. Moreover, to migrate because of the time of year. Move to a warmer climate. Go on vacation to the sea. Or on the contrary, go to the mountains to ski.
A free person chooses when and where to go. In decentralization, the small community will also depend on his work. The move will be equal to desertion. Then such a decision of not one member of the society, but say a dozen or a hundred, can lead to terrible consequences.
Now with regard to production and losses. There is no loss if there is no profit. Conventionally, the society requires glass. So you need to produce this glass. Given that there is no surplus value, when the bourgeois appropriates the results of labor, then there is no problem. If the society needs a ton of glass, they will release a ton of glass.
It has already been proven in capitalism. There is no shortage of goods. There is only the inability of many members of society to buy these goods. In fact, there is a shortage of banknotes. If you withdraw the money, and leave a certain analogue to facilitate the exchange between people. Destroy the concept of profit and loss. It turns out the paradox of saturation with all the necessary material goods.
I am writing the version in Russian because I am not sure that the translator will make a correct translation. We return to the glass. For its production, it will require soda ash, quicklime and sand. For sufficient heating of the container and the melting furnace. Naturally gas or coal. This can be unprofitable if the gas is conditionally $ 100 per cubic meter. The only question is, who exactly determines the value of capitalism?
Why is gold more expensive than iron? Yes, gold can be used in microchips. Gold is harder to mine. That's just gold requires much less than iron.
Therefore, the concept of losses exists only in capitalism. There is another question in socialism. Does the society need this thing or not?