Distinguish Between First-Tier and Second-Tier Suppliers in a Supply Chain

question 29

Essay

Distinguish between first-tier and second-tier suppliers in a supply chain and provide an example.

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Definitions:

Storeroom

A room or area where materials, goods, supplies, etc., are kept for future use.

Work in Process

Goods that are currently being manufactured but are not yet completed, representing a stage between raw materials and finished goods inventory.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead.

Purchase of Raw Materials

The acquisition of the basic materials required for the production of goods or delivery of services.