Figure 2-11 Mercedes Benz Produces a Full Line of Luxury

question 332

True/False

Figure 2-11 Mercedes Benz produces a full line of luxury automobiles, including coupes, sedans, and SUVs, at a variety of manufacturing plants across the globe. Assume Mercedes Benz produces both coupes and SUVs at its Tuscaloosa, Alabama factory. Figure 2-11 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory.
-On a diagram of a production possibility frontier, opportunity cost is represented by the production possibility frontier shifting outward.

---

Definitions:

Information Flows

The movement or exchange of information within an organization or between entities, facilitating decision-making and operations.

Shipments

The process of transporting goods from one location to another.

Bullwhip Effect

The phenomenon in supply chain management where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Vertical Integration

Strategy of integrating the upstream part of the supply chain with the internal part, typically by purchasing upstream suppliers, so as to ensure timely availability of supplies.