Vertical Alliances Can Create Lean Value Chains by Reducing Total

question 135

Multiple Choice

Vertical alliances can create lean value chains by reducing total supply chain costs in all of the following areas except ________.

• A) transaction
• B) communication
• C) quality
• D) logistics

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Definitions:

Law of Supply

The economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service will also increase, ceteris paribus.

Decreasing Opportunity Costs

A situation in which sacrificing less of one good to produce another becomes possible, often due to efficiencies or learning.

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Breast Milk

The milk produced by human breasts or mammary glands, specifically designed to feed babies and infants, containing essential nutrients for development.