1. Reduce the number of subassemblies
You could pool and reduce the demand variation by focussing more on the manufacturing of circuit boards that do a large set of functions but enabling only the set requested and paid by the customer. This should lead to lower inventories.
2. Pool Type A components with the outsourced manufacturer
You could sell the Type A components to the outsourced manufacturer-provided he has demand for those components for his other customers. This should also reduce your inventory.
3. Hold inventory in components instead of subassemblies
The cost of inventory could be reduced by holding the inventory in raw components instead of circuit boards/subassemblies and manufacturing it on demand.
The case is designed to be presented to the candidate by an interviewer, who plays the role of a representative of an electronic test equipment manufacturer.
The interviewee is to be tested on developing an understanding of the supply chain, and asking the right questions to extract the given information.