Identify the nonvalue-added activities that occur between the companies described in the above…

Value chain analysis Soundwave Company manufactures and sells high-quality audio speakers. The speakers are encased in solid walnut cabinets supplied by Herrin Cabinet Inc. Herrin packages the speakers in durable moisture-proof boxes and ships them by truck to Soundwave’s manufacturing facility, which is located 50 miles from the cabinet factory.

Required

Identify the nonvalue-added activities that occur between the companies described in the above scenario. Explain how these nonvalue-added activities could be eliminated.

 

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