2. A handbag manufacturer makes a major design change after they identify a hazardous zipper during test marketing. Which risk is mitigated with this change?
Answer: D
Product risk is mitigated with the design change.
Making a major design change to address a hazardous zipper directly mitigates product risk, as it ensures that the final product is safe for consumers and meets quality standards.
A) Inventory
Inventory risk pertains to the potential for unsold goods or excess stock. While the design change may impact future inventory levels, it does not directly address the risk associated with the product's safety or quality.
B) Logistics
Logistics risk involves the challenges related to the transportation and distribution of products. The design change does not affect logistical operations, as it focuses solely on the safety and functionality of the product itself.
C) Capacity
Capacity risk refers to the ability to produce enough goods to meet demand. The design change does not influence the manufacturing capacity, but rather it aims to enhance the product's safety, thereby not mitigating capacity risk.
D) Product
The design change specifically targets the hazardous zipper, which directly relates to product risk. By modifying the design, the manufacturer reduces the likelihood of safety issues and ensures that the handbag is safe for consumer use.
Conclusion
The design change effectively mitigates product risk by addressing a safety hazard associated with the zipper. Other options, such as inventory, logistics, and capacity risks, are not directly impacted by the design alteration, making them incorrect in this context. Thus, focusing on product safety is crucial for maintaining consumer trust and compliance with safety standards.