A company in Canada is building a moveable oil exploration rig to the exact specifications provided by a South American oil company. The rig is able to move under its own power. Upon arrival, it will stay fixed in one location using a combination of a GPS system and gyroscopes until the owner wants to move it again. The construction of this moveable drilling platform exemplifies which of the following?
A) derived demand
B) customer-pull manufacturing environment
C) customer-push manufacturing environment
D) change in the economic environment

Question

Quizplus · Accepted Answer

This is an example of a customer-pull manufacturing environment because the rig is being built to the exact specifications provided by the South American oil company, indicating that they are the customer driving the manufacturing process.

A Company in Canada Is Building a Moveable Oil Exploration