Which Statement Regarding Efficient Supply Chains Is Most Accurate

question 65

Multiple Choice

Which statement regarding efficient supply chains is most accurate?

• A)Efficient supply chains often operate with relatively low inventory levels.
• B)Efficient supply chains use common platforms and common components across several products.
• C)Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses.
• D)Efficient supply chains traditionally use expensive,but faster,modes of transportation.
• E)Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

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Definitions:

Tacit Collusion

A situation where firms indirectly coordinate actions not through direct communication but through understanding and mutual adjustments of strategies.

Monopolistic Competition

A commercial scenario where a plethora of firms deal in products that are very much alike but not perfectly the same, giving them some extent of influence in the market.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect knowledge, leading to firms being price takers.

Profit-maximizing Price

The selling price per unit that maximizes a firm’s profits, based on its cost structure and market demand.