A manufacturer of toys and board games has built a reputation on quality. However, sales have leveled
Question:
A manufacturer of toys and board games has built a reputation on quality. However, sales have leveled off in recent years. The VP of sales has been concerned with customer complaints about the company's realistic line of working-model factories, farms, and service stations. The moving parts on certain models become disengaged and fail to operate or operate erratically. His assistant has proposed a trade-in program by which customers could replace malfunctioning models with new ones. He also proposes rebuilding the trade-ins and selling them at discounted prices in the company's retail outlet store. A production assistant has suggested increasing inspection of finished models before they are shipped. Take the role of a consultant who has been called in for advice by the company president. What do you recommend?
Step by Step Answer:
Operations Management
ISBN: 9781259270154
6th Canadian Edition
Authors: William J Stevenson, Mehran Hojati, James Cao