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Hi can you help me with these questions:
1. In which stage of the product life cycle should product strategy focus on forecasting capacity requirements?
A introduction
B growth
C maturity
D decline
ANSWER: B – growth2. Which of the following helps operations managers direct their efforts toward those items that show the greatest promise?
A value engineering
B financial analysis
C product cost justification
D product-by-value analysis
ANSWER: D – product by value analysis3. In which stage of the product life cycle should product strategy focus on improved cost control?
A introduction
B growth
C maturity
D decline
ANSWER C – maturityCan you help clarify these answers. I am very confused. I thought cost control and capacity requirements should already be determind at the introduction stage?
Thank you so much
You are right in that all of the factors will be considered right from the very beginning – the introduction phase.
However, for (1) it is during the growth phase that they really need to focus on making sure there is enough production capacity to be able to supply the demand when it is growing.
Similarly for cost control, it is in the maturity stage that they need to focus more on cost control because in the growth stage they will be making lots of profit (because of increasing sales) but in the maturity stage the revenue will not be growing and so the only way of making more profit will be to focus on controlling costs.
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