A Third Party Can Increase the Supply Chain Surplus by Aggregating

question 10

Multiple Choice

A third party can increase the supply chain surplus by aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own.This is called

• A)capacity aggregation.
• B)inventory aggregation.
• C)warehouse aggregation.
• D)relationship aggregation.

---

Definitions:

Possesses

To have or hold property, items, or qualities, indicating ownership or control over such.

Receive

The act of accepting or taking possession of something that has been given, sent, or awarded to someone.

Destination Contracts

Contracts specifying that the seller is responsible for the delivery of goods to a specific destination.