Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
A) Bypassing the activities and costs of distributors and dealers by selling direct to customers
B) Replacing certain value chain activities with faster and cheaper online systems
C) Increasing production capacity and then striving hard to operate at full capacity
D) Relocating facilities so as to curb the cost for shipping and handling activities
E) Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question

Quizplus · Accepted Answer

Increasing production capacity and operating at full capacity may help in achieving economies of scale, but it is not a revamp of the value chain. The other options explain how a revamp of the value chain can help in achieving cost advantages.

Which of the Following Is NOT One of the Ways