Why is the importance of a production management system exaggerated in the early stages of a new business?
A)There are customers who are ready to pay exorbitant price for a newly launched product.
B)The firm has only limited resources and strong time pressures to perform well at the outset.
C)There are a number of suppliers who are ready to supply raw materials for a credit.
D)The firm has to pay very high interest rate to banks and other financial institutions.

Question

Quizplus · Accepted Answer

In the early stages of a new business, the firm has limited resources and time pressure to perform well. A production management system helps to optimize the use of resources and ensures efficient production, which is crucial for a new business to meet customer demands and establish a reputation for timely delivery. Without a proper production management system, a new business may struggle to meet customer demands, lose out on potential customers, and fail to establish a foothold in the market. Therefore, the importance of a production management system is exaggerated in the early stages of a new business. Options A, C, and D are not relevant to the importance of a production management system in the early stages of a new business.

Why Is the Importance of a Production Management System Exaggerated