Matt Lothamer Is the Supply Chain Manager for a Large

question 76

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 if he's able to reduce expenses and 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:

Income Level

The amount of monetary or non-monetary earnings produced by an individual or entity within a specified period.

Marginal Utility

The extra pleasure or benefit a person receives from using an additional unit of a product or service.

Unlimited Income

A theoretical concept implying an income level with no upper limit, allowing for an unrestricted ability to purchase goods and services.

Potato Chips

Thin slices of potato that are deep fried or baked until crispy, often served as a snack.