A manufacturing company's profits are decreasing,and after a full review the president concludes that his workers are best at managing finished goods inventory and servicing customers extremely well.What should the president have the company do to improve its financial results?
A) make its component parts as needed
B) make its component parts periodically and warehouse them
C) buy its component parts
D) use the economic order quantity formula to decide how many components to make

Question

Quizplus · Accepted Answer

Buying component parts can allow the company to focus on its strengths in managing finished goods inventory and servicing customers, potentially improving financial results by reducing the costs and complexities associated with manufacturing components.

A Manufacturing Company's Profits Are Decreasing,and After a Full Review