Matt works as a sales representative at Tandem Industries, which manufactures and sells bicycles. He's the best salesman on the floor, but he also receives the highest number of customer complaints for late deliveries. Which of the following, if true, best explains this situation?
A) The company uses enterprise solutions to manage inventory.
B) The company's manufacturing facility is functioning at optimum capacity.
C) The company's sales and logistics functions are tightly integrated.
D) The company keeps inventory levels low in order to reduce costs.
E) The company has an efficient credit verification process.

Question

Quizplus · Accepted Answer

In this situation, if the company keeps inventory levels low in order to reduce costs, then it directly conflicts with Matt's job of selling bicycles and ultimately results in late deliveries. This conflict is structural in nature. If the company uses enterprise solutions to manage inventory and if its sales and logistics functions are tightly integrated, then the problem of late deliveries should not arise. Similarly, if the firm's manufacturing facility is functioning at optimum capacity, then there should be an adequate of supply of bicycles. If the company's credit verification process is efficient, then it would not result in late deliveries.

Matt Works as a Sales Representative at Tandem Industries, Which