Merging Properties Would Require Twice the Amount of Supplies, but Could

question 47

Multiple Choice

Merging properties would require twice the amount of supplies, but could potentially lower costs due to:

• A)Unequal access to distribution channels
• B)Demand-side benefits of scale
• C)Capital requirements
• D)Supply-side economies of scale

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Definitions:

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.

Upstream Partners

Businesses or individuals that provide raw materials, components, or services to another company for the production of goods.

Production Rate

is the speed at which goods are manufactured or produced in a given period, often measured in units per hour or products per day.

Lost Sales

Potential sales that were not realized due to reasons such as stockouts or inadequate supply.