Which Statement Regarding Efficient Supply Chains Is Most Accurate

question 39

Multiple Choice

Which statement regarding efficient supply chains is most accurate?

• A) They often operate with relatively low inventory levels.
• B) They use common platforms and common components across several products.
• C) They rely on maintaining large geographically dispersed inventory warehouses.
• D) They traditionally use expensive, but faster, modes of transportation.
• E) They chains emphasize economies of scale by increasing the variety of system configurations offered.

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Definitions:

Long Run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have an incentive to enter or exit an industry, leading to a stable market condition.

Firm

A business organization that sells goods or services in order to make a profit.

Producer Surplus

The difference between what producers are willing to receive for a good or service and the actual amount they receive, due to the market price being higher.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.