Lean as a Strategy The American textile industry has moved much of its operations offshore in the pursuit of lower labor costs. Textile imports have risen from 2% of all textile production in the early 1960s to over 70%. Offshore manufacturers make long runs of standard mass-market apparel items. These are then brought to the United States in container ships, requiring significant time between original order and delivery. As a result, retail customers must accurately forecast market demands for imported apparel items. Rather than competing with the offshore manufacturers on price in the textile industry, some U.S companies are: a.providing smaller quantities with much faster delivery. b.producing much larger batches with a strategy of flooding the market. c.making large order commitments to control the fashion market. d."providing smaller quantities with much faster delivery", "producing much larger batches with a strategy of flooding the market", and "making large order commitments to control the fashion market" are correct. e.None of these choices is correct.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 2E
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8.

Lean as a Strategy

The American textile industry has moved much of its operations offshore in the pursuit of lower labor costs. Textile imports have risen from 2% of all textile production in the early 1960s to over 70%. Offshore manufacturers make long runs of standard mass-market apparel items. These are then brought to the United States in container ships, requiring significant time between original order and delivery. As a result, retail customers must accurately forecast market demands for imported apparel items.

Rather than competing with the offshore manufacturers on price in the textile industry, some U.S companies are:

a.providing smaller quantities with much faster delivery.
b.producing much larger batches with a strategy of flooding the market.
c.making large order commitments to control the fashion market.
d."providing smaller quantities with much faster delivery", "producing much larger batches with a strategy of flooding the market", and "making large order commitments to control the fashion market" are correct.
e.None of these choices is correct.
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