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Discuss about the product line simplification.
In certain circumstances, a company may accept the strategy of slimming or contracting the product mix this may do so by abandoning a product line or decreasing the variety of models into a product line termed as product line simplification. Several companies as Xerox, General Electric, Radio-corporation of America and so more dropped certain products lines overall and also thinned exact fat product lines. The goals of trimming the product line is to abandon the low sales volume and low profit products and concentrate onto a restricted number of high-profit products.
Figi Fabricating Company is reviewing the economic feasibility of manufacturing a part that it currently purchases from a supplier. Forecasted annual demand for the part is 3200 u
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