As product customization increases: a. Inventory costs and unit costs both go up b. Unit costs...
As product customization increases:
| a. |
Inventory costs and unit costs both go up |
|
| b. |
Unit costs go down but inventory costs go up |
|
| c. |
Inventory costs and unit costs both go down |
|
| d. |
Unit costs go up but inventory costs go down |
Homework Answers
|
d. |
Unit costs go up but inventory costs go down |
As the product customization increases, the inventory to be kept is relatively lesser and shall be ordered only when the same is demanded for. Hence the inventory costs goes down due to lesser inventory levels. However, unlike mass production, the unit cost to produce such customized product increases.
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As product customization increases:
a.
Inventory costs and unit costs both go up
b.
Unit costs...
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