When a Large Retailer Asks a Company to Manufacture a Product

question 4

Short Answer

When a large retailer asks a company to manufacture a product so that it can be sold at a low(er)price point,the company is often constrained to outsource its production overseas.Such a phenomenon is called the ____________________.

---

Definitions:

Lead Times

The amount of time that passes from the initiation of a process to its completion.

Value-Added

The increase in worth of a product or service as a result of a particular process.

Lean Philosophy

A management approach focusing on minimizing waste and maximizing value in processes by considering customer value as the primary goal.

Necessary Buffer

A strategic reserve or margin of safety to mitigate risk or unforeseen circumstances, ensuring stability and continuity.