Manufacturing Process
The company has three warehouses; two for raw materials and one for finished goods.
However, as the company grows every year, two raw materials warehouses are no longer
enough. The company eventually has to lend public warehouses, which leads to higher variable
costs. Therefore, as there is the increase in demands, the company should consider expanding
raw materials warehouses to response to this growth. Also, the company will get return on asset
(ROA) by having its own warehouse.