1. A supply chain that involves suppliers of raw materials in Germany, manufacturers in China, distributors in Spain, and retailers in the United States has ______ different levels or stages.
A. 5
B. 4
C. 3
D. 2
2. Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company A is a ___________ in the supply chain of ice cream.
A. tier 2 supplier
B. tier 1 supplier
C. manufacturer
D. retailer
3. As demand increases, the optimal economic order quantity increases at the same rate of demand. True or False?
4. A firm's ordering cost per year is independent of its order quantity decision. True or False?