A Supply Chain

question 21

Multiple Choice

A supply chain

• A)is part of a broader network of relationships called a channel of distribution.
• B)is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain.
• C)requires skill in coordinating activities among different firms,which has prompted many firms to seek help from outside experts.
• D)focuses on procuring materials needed for production,so its main weakness is that it ignores customer needs.
• E)concerns only direct relationships between producers,while a channel of distribution may involve intermediaries.

Understand the consequences of committing plagiarism in academic work.

Recognize the importance of proper citation and referencing in avoiding plagiarism.

Understand the relationship between marginal cost, average variable cost, and average total cost.

Analyze the implications of variable and fixed costs on the firm's decision-making process.

---

Definitions:

Short Hedger

An investor who enters into contracts or investment positions to reduce the risk of price decreases in an asset they currently own or plan to own.

Basis

In finance, the difference between the spot price of an asset and the future price, or the inverse, depending on the context.

Long Hedger

A long hedger is an investor or company that enters into a hedge transaction to protect against a rise in the price of an asset in the future.

Short Hedger

A short hedger is an investor or trader who enters into contracts to sell an asset in the future to hedge against the risk of falling prices.