Produce in Sereno and ship to Merica

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Q:  How can a company specify that it wants to produce in Sereno and ship the units produced back to Merica to take advantage of the low production costs in Sereno?

 

A:  The allocation of production is explained in Marketing FAQ "Inventory policies.  We have set up the rules so that it is easy to ship from Sereno as a low cost producer.  When sales orders cannot be filled from a plant within a Merica area, if a plant is located in Sereno and the plant has produced more units of product than the sales office in Sereno has ordered, the excess Sereno produced units are the first shipped to sales offices in Merica where orders were not filled completely by production plants in their area.  By careful management of production capacity and sales office orders, teams can take advantage of low cost production in Sereno.  

 

As an aside you can raise some interesting questions about the impact that has upon US workers and what responsibility the firm has to its work force.  Many interesting avenues of discussion can be followed from this.