A company has made a strategic decision to introduce products to improve profitability. Which of the following issues should the company be concerned about most while implementing this decision?
A company has made a strategic decision to introduce products to improve profitability. Which of the following issues should the company be concerned about most while implementing this decision?
When a company introduces new products to improve profitability, the most critical issue to be concerned about is unpredictable demand. Accurately forecasting demand for new products is crucial for managing inventory levels, production planning, and overall supply chain efficiency. If the demand is not predicted correctly, the company may face overproduction or stockouts, directly impacting profitability. Other issues like reverse supply chain, warranty and repair, and patent security are also important but may not have as direct an impact on the initial success and profitability as unpredictable demand.
Unpredictable demand. When introducing new products to improve profitability, a company should be most concerned about unpredictable demand. Accurately forecasting demand for new products can be challenging, but it is essential for managing inventory levels, production planning, and overall supply chain efficiency. Other issues such as reverse supply chain, warranty and repair, and patent security are important but may not have as direct an impact on the success of the new product introduction