Question

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

A. adopting lean production and flexible manufacturing technologies.
B. increasing the number of business processes.
C. implementing first-in-first-out inventory control systems.
D. taking steps to increase customer churn.
E. abandoning economies of scale and learning effects.

Answer 1

A

Step-by-step explanation:

Company should adopt lean production and flexible manufacturing technologies, through this the cost incurred will be reduced. By adopting lean production, waste during the production process will be minimized. As a result, more output will be produced on the same number of inputs given. In addition to that, by using low cost strategy, the demand of products will be expected to increase and the company will need a flexible manufacturing technologies that can handle the sudden increase of volume output needed by the customers.