Question

5. What are some of the manufacturing issues Ricci will face?

Answer 1

One of the manufacturing issue Ricci will face is that the product will is manufactured in New England. Comparing to other countries manufacturing products in the United States is more expensive than outsourcing a product to manufactured overseas. This will increase the operating costs of the product and reduces the margins for profits. Another issue is that since Ricci doesn't have a warehouse after the manufacturing of product, it has to be drop-shipped at a storage facility.. The only place Ricci has available to store inventory is in the garage and this places a cap on the amount of products that can be manufactured at a time and this increases cost per product.The product could be manufactured in larger batches in order to reduce the cost per product and increase the profit margins if Ricci had a warehouse