Answered

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Which one of the following is an advantage of having production facilities to manufacture athletic footwear in all four geographic regions?
O Increased ability to achieve a higher S/Q rating on branded pairs at a lower cost than rivals having production operations in 1, 2, or 3 geographic regions
O Increased ability to reduce companywide spending for TQM/Six Sigma programs because the benefits gained from TQM/Six Sigma expenditures at one production facility are automatically transferred to other production facilities at zero cost
O Increased ability to gain volume discounts on purchases of superior materials and thereby lower the company's costs of using superior materials in producing branded footwear
O Increased ability to lower expenditures for shipping/freight costs from the company's production operations to distribution centers in the various regions-this is because when a company has production operations in all four geographic regions it typically needs to ship fewer pairs of footwear from production facilities in one region to distribution centers in a different region
O Maximum ability to achieve all available production-related economies of scale and thereby achieve a production cost advantage over rivals having production facilities in only 1, 2 or 3 geographic regions

Sagot :

To manufacture athletic footwear in all geographic regions then it should achieve all available production-related economies of scale for earn a production cost advantage over rivals in all production facilities. Option D is correct.

What is Economies of scale?

When the scale or magnitude of the production produced by a firm increases while simultaneously the average cost per unit of output decreases this common phenomena is refers to a stage of economies of scale.

Three types of scale:

  • scale economies in technology.
  • scale economies in purchasing also known as buying economies of scale.
  • financial scale economies.

Thus for a different geographic manufacturing facilities of a athletic footwear entity shall have all the economies of scale to earn a cost advantage.

To know more about Economies of scale refer:

https://brainly.com/question/15605103

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