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If a company wants to enhance the profitability of differentiating its branded product offering from rivals by offering say 500 models, then it should seek to reduce the costs associated with producing 500 models at its plants by?

a. instituting plant upgrade option B.

b. instituting plant upgrade option C.

c. building plants in all four geographic regions.

d. perhaps consolidating the production of branded footwear in just one plant (to only incur the payment of production run setup costs one time).

e. investing in plant upgrade option B and/or consolidating the production of branded footwear in just one plant (to only incur the payment of production run setup costs one time)—both of these options are valid ways of reducing the costs of producing 500 models.

Operation Management, Management Studies

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