What are the major disadvantages of product grouping?
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Answer Posted / Praveen Kumar Pravendra
The major disadvantages of product grouping include:
1. Inefficient Resource Utilization: Grouping similar products may lead to inefficient use of resources such as machinery, personnel, and materials.
2. Delayed Response to Changes: Product grouping can make it difficult to respond quickly to changes in customer demand or market trends.
3. Reduced Flexibility: Grouped production lines might not be easily adaptable to produce different products, limiting flexibility.
4. Increased Inventory Costs: Grouping can result in higher inventory costs due to the need for buffer stocks to accommodate fluctuations in demand.
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