Which is the first step in the process of Contract Manufacturing?
A
Contract manufacturer manufactures and reports progress to the original equipment manufacturer
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B
Customer places a sales order
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C
Product shipped on the customer's request.
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D
Manufacturing is outsourced partially to a contract manufacturer.
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Solution
The correct option is B Customer places a sales order A contract manufacturer is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing. A contract manufacturer performing packaging operations is called co packer or a contract packager.