A handbag manufacturer makes a major design change after they identify a hazardous zipper during test marketing. Which risk is mitigated with this change?

Rationale

Product risk is mitigated with this change.

By making a design change to address the hazardous zipper, the manufacturer actively reduces the potential dangers associated with the product itself. This proactive adjustment enhances safety and compliance, ensuring that the final product meets quality standards and consumer expectations.

A (Inventory) YOUR ANSWER

Inventory risk pertains to the management of stock levels and unsold products. Changing the design of a handbag does not directly influence the amount of inventory held, as inventory risk revolves around supply chain management and sales forecasts rather than product safety.

B (Logistics) YOUR ANSWER

Logistics risk involves the complexities of transporting and distributing products. While a design change may affect packaging or shipping methods, it primarily addresses product safety rather than logistics efficiencies or challenges. Therefore, logistics risk is not directly mitigated by altering the handbag design.

C (Capacity) YOUR ANSWER

Capacity risk refers to the potential inability to meet production demands. A design change does not inherently affect the production capacity of the manufacturer, as this is determined by the resources and processes available. Thus, capacity risk remains unchanged by addressing product hazards.

D (Product) CORRECT

Addressing the hazardous zipper directly reduces product risk, which encompasses safety, compliance, and customer satisfaction. By implementing a design change, the manufacturer ensures that the handbag is safer for consumers, thereby mitigating risks associated with product liability and potential recalls.

Conclusion

The handbag manufacturer's decision to modify the design in response to a hazardous zipper effectively reduces product risk. This change not only ensures consumer safety but also protects the brand's reputation and legal standing. Other risks, such as inventory, logistics, and capacity, are not directly impacted by this design alteration, underscoring the importance of prioritizing product safety in manufacturing processes.

A handbag manufacturer makes a major design change after they identify a hazardous zipper during test marketing. Which risk is mitigated with this change?

Product risk is mitigated with this change.

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