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:

Long Run

A period in economics where all factors of production and costs are variable, allowing for full industry adjustment to changes.

Perfect Competitor

A theoretical market structure where many firms offer a standardized product, there is free entry and exit, and all buyers and sellers have perfect information, leading to price being equal to marginal cost.

Long Run

A period in which all inputs can be adjusted, allowing firms to change their production capacity and industries to enter or exit markets.

Perfect Competitor

A theoretical firm in a perfectly competitive market where it is a price taker, and there are no barriers to entry or exit.