The Two Types of Decisions That Are Relevant to Supply

question 6

Multiple Choice

The two types of decisions that are relevant to supply chain management are:

• A)Short, long term
• B)Domestic, international
• C)Location, layout
• D)In-source, out-source
• E)Tactical, operational

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Deadweight Loss

An inefficiency in the economy caused by the lack of or inability to attain equilibrium in the market for a particular good or service.

Inelastic

Describing a situation where the demand or supply for a product does not significantly change in response to a change in price.

Excise Tax

A tax levied on specific goods, services, or transactions, often with the aim of reducing their consumption.