Question

Wellford Industries manufactures cloth for international clothing companies. Recently top management has noticed that the production and purchasing managers have focused on reducing inventory levels. While this has decreased the costs associated with storing inventory, it has also resulted in several stock-outs and missed opportunities for sales to new customers. Which of the following systems could be used by Wellford to focus its managers on all areas of the business? A : Theory of constraints B : Total quality management (TQM) C : Just-in-time inventory (JIT) D : Balanced scorecard

Answer 1

Answer:

D: Balanced Scorecard

Explanation:

Balance Scorecard is a business strategy in which the company looks to develop a strategy for the business, it is a kind of internal process in which the company aims, to modify its work process, as with the modified work process it can aim to have better outcomes, in the form of financial, customer, business processes etc:

If company uses Just in time approach it will still face the stock outs and might loose customers, but with balanced scorecard this problem will not arise, as it will enhance the quality and quantity of performance.

This will ensure optimum inventory at any point of time and along with that the minimal cost and good quality will be focused, as of now, the company does not need to think much on quality improvement as it do not have any quality complaints from any customers.