In order for a manufacturer of consumer goods to maximize responsiveness to changes in consumer demand for its products:
A)It is best to outsource the production of components and materials
B)It is best to be backward integrated into the production of components and materials
C)It depends upon the type of flexibility that is desired
D)It is best to be partially backward integrated.

Question

Quizplus · Accepted Answer

The best choice depends upon the type of flexibility that is desired. If the manufacturer values cost efficiency, outsourcing the production of materials and components may be the best option. However, if the manufacturer values control over the production process and wants to quickly adjust to changes in demand, being backward integrated into the production of components and materials may be the best option. Partial backward integration may also be a viable option, balancing the benefits of both outsourcing and backward integration. Ultimately, it depends on the specific goals and priorities of the manufacturer.

In Order for a Manufacturer of Consumer Goods to Maximize