Matt Lothamer Is the Supply Chain Manager for a Large

question 124

Multiple Choice

Matt Lothamer is the supply chain manager for a large plastics manufacturing company. He is responsible for procuring a wide variety of raw materials to be utilized in the manufacturing process of their plastic products. As part of an annual quality control and expense analysis, Matt is reviewing the prices charged by the raw materials suppliers and also seeking bids from competing suppliers to determine whether any savings could be realized. Matt is rewarded by the company with bonuses when he is able to reduce expenses associated with the raw materials as this could lead to higher profit margins on the products they manufacture. Matt knows that saving a few cents can make a dramatic difference since they manufacture thousands of products at their state-of-the-art facility in Indiana. What type of analysis do you believe Matt Lothamer can perform utilizing the data related to the prices charged by their current and prospective raw materials suppliers?

• A) cost analysis
• B) sales analysis
• C) advertising analysis
• D) engagement analysis

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Definitions:

Collusion

An agreement, usually secretive, between firms to fix prices, limit supply, or inhibit competition.

Candy Bar Manufacturers

Companies or entities that specialize in producing and distributing candy bars.

Grocery Store

A retail establishment that primarily sells food, both fresh and packaged, along with various household items.

Price-Searcher Market

A market in which sellers have some control over the price of their product because the products are differentiated and there is imperfect competition.