9. A supply chain that involves suppliers of raw materials in Germany, manufactu

Question

9. A supply chain that involves suppliers of raw materials in Germany, manufacturers in China, distributors in Spain, and retailers in the United States has ______ different levels or stages.

A. 5

B. 4

C. 3

D. 2

10. Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company A is a ___________ in the supply chain of ice cream.

A. tier 2 supplier

B. tier 1 supplier

C. manufacturer

D. retailer

11. As demand increases, the optimal economic order quantity increases at the same rate of demand.  True or False?

12. A firm's ordering cost per year is independent of its order quantity decision. True or False?

Explanation / Answer

9. b) 4

This is because there are 4 levels here suppliers in Germany, manufacturers in China, Distributor in Spain and retailers in US.

10. a) tier 2 supplier

This is because Company A supplies corn to Company B , So company A is tier 1 supplier for Company B. Now Company B makes syrup for Company C's ice cream, So Company B is tier 1 supplier for company C and company A becomes tier 2 supplier of company C.

11. False. EOQ increases with the factor of square root of 2 when demand doubles.

12. False.

This is because higher the ordering cost per year, lower the ordered quantity per order.

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