A company opting to boost its sales of branded footwear by offering buyers 500 models/styles to choose from should consider reducing the 15 million annual costs for production run setup costs associated with producing 500 models/styles at each production facility by:

A. doubling its expenditures for enhanced styling/features to also increase the S/Q ratings of its footwear brand.
B. cutting the percentage use of superior materials to help cover some (preferably all) of the costs of the $15 million in annual production run setup costs at each production facility producing 500 models/styles.
C. building production facilities in all four geographic regions and producing 500 models/styles at each location.
D. investing in production improvement option B at those production facility locations producing 500 models.
E. instituting production improvement options A and C at each production facility where 500 models are being produced.

The consideration that the company opting to boost sales should keep in mind is that of D. investing in production improvement at those production facility locations producing 500 models.

What should the company consider?

If the company wants to reduce the 15 million annual cost that they could incur for producing the 500 models, they should make their production methods more efficient.

They can do this by investing in production improvement methods at the facilities that will be producing the models.

In conclusion, option D is correct.

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