Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 1CQ
Summary Introduction

To identify: The best way Firm A can be described.

Expert Solution & Answer
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Explanation of Solution

Correct option: (a)

Correct answer:

Tier 2 supplier.

Justification:

Firm A manufactures the brake pads which is a component of a braking system and it is bought by Firm B. Firm B sells the entire braking system used in vehicles. Firm A is therefore known as a Tier 2 supplier. A Tier 2 supplier is one who is not less vital to the supply chain but are generally limited on the type of components they are able to produce. Tier 2 companies are smaller and have less technological advancements.

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