Caterpillar announced plans to cut its production of corn
Answers
Caterpillar announced plans to cut its production of construction equipment due to forecasted increasesin steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used feedforwardcontrols. Because Caterpillar monitored its inputs, it realized that a problem with its output would occur in the near future.
The news that Caterpillar is going to cut its production of construction equipment is true since the company has been in the business for a while and hence the company seems to be on the edge of its tolerance when it comes to the prices of steel.
The steel prices have been forecasted to increase and the company cannot sustain such a hike in price and hence it has made the decision to stop the production of the equipment.