A manufacturing company stockpiles inputs and holds inventories of component parts so the conversion process is not disrupted if there is a problem with suppliers. It also stockpile finished products so it can respond quickly to an increase in customer demand without changing its established conversion processes. Which of the following technologies, as identified by Thompson, is most likely being used by this company?
A) small-batch technology
B) long-linked technology
C) intensive technology
D) mediating technology

Question

Quizplus · Accepted Answer

The company's strategy of holding inventories of inputs and finished products suggests that it is using long-linked technology, which emphasizes the importance of large inventories to ensure that the conversion process is not disrupted and that customer demand can be met quickly. Small-batch technology focuses on producing small quantities of customized products, while intensive technology involves maximizing efficiency and minimizing inventories. Mediating technology involves facilitating communication and coordination between different parts of the organization.

A Manufacturing Company Stockpiles Inputs and Holds Inventories of Component