Question

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

a. most customers are likely to agree on a single product configuration.

b. customers prefer to upgrade their products by replacing their entire system.

c. customers are willing to pay a premium price for extreme customization and personalization.

d. customers have heterogeneous demands which are expected to be met in a cost-effective way.

Answer

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