Question: Morgret Manufacturing Company makes electric heaters for residential use and

Morgret Manufacturing Company makes electric heaters for residential use and purchases a variety of electrical components from Marquis Electronics. Because of safety issues and potential liability concerns, Morgret inspects all of the purchased components.

Required
A. Is inspection of the components a value-added or non-value-added activity?
B. How can supply-chain management be used to reduce the costs of inspecting the components purchased from Marquis?


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  • CreatedMarch 11, 2015
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