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An ethical firm would strive to select suppliers for the supply chain guided primarily by:
Variable Cost
Costs that vary directly with the level of production or sales, such as raw materials and labor.
Carrying Cost
The total cost of holding inventory, including storage, insurance, taxes, and depreciation.
Fixed Cost
Costs that do not vary with the volume of output produced, such as rent, salaries, and insurance premiums.
Inventory
The total amount of goods and/or materials contained in a store or factory at any given time.
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