EV Inc is facing the following challenges: 1. The capital investment is enormous. 2. Most of company's working capital is in form of inventories…

Every sector among the options requires intensive capital investment. However, only manufacturing

and retails bury much of their working capital in form of inventory. Raw materials and WIP only

present in manufacturing sector.

The manufacturing industry is undergoing massive change, rivaling the Industrial Revolution that

began in England and continued on Detroit's assembly lines. But today’s revolution is “smart,” thanks

to factories using artificial intelligence and robots.

A new trend is the “cobot” — a collaborative robot designed to work with humans. One company

called Moduform uses them to make furniture in the U.S. The company credits using cobots for

reducing their staffing turnover, since the robots do mundane repetitive tasks that bore humans,

while people can now do cognitive tasks requiring judgment and diversified responsibilities. Other

innovations include 3D printing, Artificial Intelligence and automation.

Today’s artificial intelligence manufacturing revolution improves performance in two key areas of

manufacturing: productivity and quality control.

Reference:

- The Key Characteristics of Manufacturing (bizfluent.com)

- CIPS study guide page 74-76

LO 2, AC 2.1