Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products.Sales of Sparkle,its flagship disinfectant,and some of its other cleaning products have been slow during the last two quarters.Of late,retailers have also shown a lack of confidence in these product lines.The management is looking at different ways to improve the efficiency of its entire supply chain.Some senior executives believe that the company should shift to a just-in-time logistics system.However,this opinion does not have unanimous support. A senior executive claims that a move to a "just-in-time" logistics system would be a mistake because even if the system is effective at reducing inventory and handling costs,the change would not be noticed by customers.The executive claims that the change should be rejected as it runs counter to Clean Sweep's goal of being "customer-focused." Which of the following is the best criticism of the senior executive's position?
A) It does not prove that focusing on the customer helps an organization become successful.
B) It does not suggest an improvement to Clean Sweep's current system.
C) It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers.
D) It does not establish that the costs of switching to the new system would outweigh any cost-reduction benefits the system might provide.
E) It does not describe the inventory systems used by Clean Sweep's competitors.
Correct Answer:
Verified
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