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Newer, higher-volume products tend to be made fashionable newer, focused, high-volume plants, while elderly product lines incline to be appointed to the Motown plant, the oldest one in the system.
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Case study solution, wriston manufacturing is letter a manufacturer of letter a wide range of components for the automotive industry.
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What kind of products does Wriston manufacturing make?
Wriston Manufacturing is a manufacturer of a wide range of components for the automotive industry. It was created by a network of nine plants, as its product line has grown.
Which is the best option in the Wriston case?
The best suitable option is option number one, to close the plant as soon as possible and transfer its products to other. The major risks for implementation of the option are that it requires a huge investment of $17 million implementation and $6 million redundancy cost. The inflows are only $4 million from sale of the plant.
Why was there a downturn in the Wriston industry?
The reason behind this downturn is because of lack of investment in the plant section. The investment is decreasing year on year basis and depreciation is increasing. The plants need investment equal to or above depreciation for better performance.
Last Update: Oct 2021
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