ErgoWorld manufactures office furniture.The company is considering adopting a modular production system.A modular system offers greater value to ErgoWorld when:

Question

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A modular production system would be most advantageous for ErgoWorld when there is heterogeneity in customer demands. A modular system allows for flexibility in creating different configurations to meet various customer needs at a lower cost. If customers were more likely to agree on a single product configuration (A) or preferred to upgrade their entire system (B), a modular system may not be necessary. Similarly, if customers were willing to pay a premium price for extreme customization and personalization (C), a modular system may not be the most cost-effective solution.

ErgoWorld Manufactures Office Furniture