Problem

Value chain analysis (Appendix)Sonic Company manufactures and sells high-quality audio spe...

Value chain analysis (Appendix)

Sonic Company manufactures and sells high-quality audio speakers. The speakers are encased in solid walnut cabinets supplied by Moore Cabinet Inc. Moore packages the speakers in durable moisture-proof boxes and ships them by truck to Sonic’s manufacturing facility, which is located 50 miles from the cabinet factory.

Required

Identify the nonvalue-added activities that occur between the companies described in the above scenario. Explain how these nonvalue-added activities could be eliminated.

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