Question

QUES 1.In a multi-product company, if they decide to discontinue some products how would they decide which products to drop? Explain using an appropriate model.​

Answer 1

In a multi-product company, the decision to discontinue certain products is usually based on a careful analysis of various factors. One model that can be used to decide which products to drop is the ABC analysis.

Step-by-step explanation:

In a multi-product company, the decision to discontinue certain products is usually based on a careful analysis of various factors. One model that can be used to decide which products to drop is the ABC analysis. In this model, products are classified into three categories based on their sales revenue and profitability: A, B, and C. Category A products are high in revenue and profitability, so they should be retained. Category C products are low in revenue and profitability, so they can be considered for discontinuation. Category B products have moderate revenue and profitability, and a decision needs to be made on a case-by-case basis for these products.

Answer 2

I don't know what the question means to use an appropriate model, but i do know that the products that aren't being bought by customers would be discontinued. This would be because its not making enough money compared to the other products, so therefore it would be discontinued.