Which of the following is the MOST likely result of upgrading to the new software?

A specialized sewing shop quilts fabrics for use in upholstered furniture. Various patterns are produced on different machines, each of which has its own set-up routine. At times, one type of machine is idle while others are backed up. The sewing floor supervisor finds new software which makes the machines’ patterns interchangeable.

Which of the following is the MOST likely result of upgrading to the new software?
A . Decreased cycle time and increased set up costs
B . Increased productivity and decreased cycle time
C . Increased equipment costs and reduced inventory
D . Reduced inventory and increased productivity

View Answer

Answer: A

Explanation:

The buyer should be most concerned about the risks associated with the shipping terms, especially as they take possession once the goods are loaded. This includes potential liabilities and loss during transit. Understanding these risks is critical for mitigating potential issues.

Reference: Incoterms® 2020 by ICC.