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 the design change of the handbag.
By altering the design after identifying a hazardous zipper, the manufacturer addresses potential safety issues, thereby reducing the risk associated with the product itself. This proactive measure helps to prevent harm to consumers and potential liability for the company.
Inventory risk pertains to the potential losses arising from unsold stock or excess inventory. While a design change may impact inventory levels or the need for adjustments, it does not directly mitigate the risks associated with the product's safety or performance, which is the primary concern in this scenario.
Logistics risk involves the challenges related to the movement and storage of goods, including transportation and supply chain disruptions. The design change does not directly address or reduce risks tied to logistics, as it focuses solely on the safety and integrity of the handbag design itself.
Capacity risk relates to the ability of a manufacturer to meet production demands. Although a design change might influence production processes, it does not specifically mitigate risks related to the design's safety or functionality. The focus of the change is on the product’s safety rather than production capabilities.
The design change directly targets product risk by eliminating the hazardous zipper, thus making the handbag safer for consumers. This action addresses potential product liability issues and enhances the overall quality of the item being marketed.
The handbag manufacturer effectively mitigates product risk by modifying the design to eliminate a hazardous zipper. This change ensures consumer safety and reduces the likelihood of liability claims associated with defective products. In contrast, inventory, logistics, and capacity risks are not directly addressed by this decision, reinforcing the importance of prioritizing product integrity in manufacturing.
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