asked 198k views
4 votes
Which of the following options requires little or no up-front investment?

a. Direct sourcing
b. Full package
c. CMT (Cut, Make, Trim)
d. Joint venture

asked
User Sohee
by
8.8k points

1 Answer

5 votes

Final answer:

CMT (Cut, Make, Trim) option (c) requires the least up-front investment among the options as it only charges for labor, whereas the other options involve more substantial capital investments.

Step-by-step explanation:

Out of the options provided, CMT (Cut, Make, Trim) typically requires little or no up-front investment when compared to other sourcing strategies in the apparel industry. CMT is a service provision model where a client provides the materials required for production, and the CMT operator only charges for the labor associated with cutting the fabric, assembling the product, and adding the finishing touches.

As such, the client does not need to invest heavily in manufacturing facilities, equipment, and sometimes even workforce training. In contrast, direct sourcing, full package, and forming a joint venture often involve a significant amount of capital investment for processes, materials, facilities, or partnership agreements.

answered
User Sydonie
by
7.7k points
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