Question

RFX International, Inc. is a manufacturer of apparels and markets its products in the United States and Canada. The company serves its market from a central manufacturing unit located in California. The company has been facing problems in efficiently managing its operations and controlling the inventory costs. Mark Arthur, the COO, recommends the installation of just-in-time inventory system to streamline the operations of the company. However, the management is skeptical about installing a totally new system. Which of the following information, if true, would support Mark's suggestion?

A) The company offers online personalization and allows customers to customize the products for each order.

B) The apparel industry in the United States is characterized by seasonal demand and companies have to make use of it.

C) The company procures raw materials from four medium sized companies in California.

D) The company procures materials from Altralex, a large scale supplier in the United States.

E) A recent analysis by the operations department revealed that two percent of the raw materials the company receives from its suppliers are defective.

Answer

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