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Refrigerator Adaptations Cold-Aire Manufactures Refrigerators from Its Facilities in the United States

Question 46

Multiple Choice

Refrigerator Adaptations
Cold-aire manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-aire manufactures over 20 different sizes and models of refrigerators, which often vary in size by only a few inches. Cold-aire managers are concerned that the firm is losing money because of all of the product adaptations. Cold-aire management is meeting to discuss the various cost-saving options for the firm.
-Which of the following questions would be more important for Cold-aire managers to evaluate when determining how the firm could reduce production costs?


A) How will consumers respond to a one-size-fits-all Cold-aire refrigerator?
B) Would Cold-aire managers be able to address standardization with home builders?
C) Can Cold-aire standardize its refrigerators and reduce the number of available sizes?
D) In what market should Cold-aire establish another manufacturing facility?

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