CH. 5-Manufactured Story? Ok, Your company is in a competitive industry- denim s
ID: 1161007 • Letter: C
Question
CH. 5-Manufactured Story? Ok, Your company is in a competitive industry- denim socks. As it turns out, these darned things have really caught on, and there are only 2 other manufacturers in the market, and the 3 of you control 90% of the supply of the ingredients (nice, very nice) So, the market is currently selling all of its production at 10% over last month's price, and there are no signs that it will let up soon. The problem of course, is that all 3 manufacturers are running at capacity So, you've been called in to consult on the next steps for your company (Sockit2me).Having just studied the sections on Supply Demand, Elasticity and a few others in your Macroeconomics class, you seem to be prepared to give insight to Sockit2me's leadership team. Your comments?Explanation / Answer
To give an insight to the team, we have to consider the following.
1. We have to consider the weekly hours worked by the manufacturing workers to increase the productivity.
2. Importance should be given to the number of manufacturers' new orders for the material.
3. The speed of delivery of the finished products to the vendors from the suppliers should given an outmost impportance, this can control the market, which equilizes the demand and supply.
4. Company should take care of the aggregate supply and aggregate demand, otherwise it will be problematic to sustain in the market.
5. Aggregate demand should meet the aggregate supply to maintain the equilibrium.
6. last but not the least the sentiments of the customers should always been taken care by the manufacturer, as it trifggers the sale.