Concept explainers
Interpretation:
A good or service providing organization which make aggregate planning decisions.
Concept Introduction:
A good producing organization refers to the company which produce and manufacture product to fulfil the demand of the end consumer. A service-providing organization refers to the company which provide services to the end-consumer by satisfying the needs or want.
Explanation of Solution
S is the company which manufactures stainless steel utensils and cutlery. They started their export with merchandise exporting and slowly they began to setup in-house manufacturing unit. The export takes place across different parts of the world majorly USA and Europe. S has a unique pricing strategy which revolves around 1%, 7% and 14% margin model. This means they operate at a very low margin which helps them to attract more customers. The promotion and advertisement is mainly through social media and cold emailing. There are fixed labours in the factory so hiring and firing does not take place and there are no subcontractors needed for the production. They hold inventory for just two to three days and then transport it to customer through sea shipment.
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