Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:

Inventory carrying costs are estimated to be 11% per year.
-After the change,sales are projected to increase because:
A)of shorter delivery lead times.
B)of higher sales prices.
C)of the ability to process larger batch sizes.
D)All of the above are correct.

Question

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:

Inventory carrying costs are estimated to be 11%  per year.
-After the change,sales are projected to increase because:
A)of shorter delivery lead times. 
B)of higher sales prices. 
C)of the ability to process larger batch sizes. 
D)All of the above are correct.

Quizplus · Accepted Answer

The Answer of Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:

Inventory carrying costs are estimated to be 11%  per year.
-After the change,sales are projected to increase because:
A)of shorter delivery lead times. 
B)of higher sales prices. 
C)of the ability to process larger batch sizes. 
D)All of the above are correct.