Costs for John Deere manufacturing in the US have increased by 50% over the last three years. John Deere employs a labor force of 1,500 people across 5 factories (Alabama; California; Colorado; New York; and Texas). John Deere utilizes both general and custom-made parts to manufacture its machines. General parts have increased in price by 20% since 2017 and custom parts have increased 300% in the last year alone. Another costly input is computer electronics which accounts for 40% per machine. The cost distribution is as follows:

Total Cost: $75,000

Labor Cost: $20,000 Electronics: $35,000

Parts / Other Inputs: $20,000

Discuss your top 3 strategy options for combating the rising cost of manufacturing.