A supplier park ______,
A)is a solution to the physical separation of suppliers from the manufacturer
B)is particularly appropriate for areas with sparse populations
C)is one way to improve the quality of manufactured products
D)can lead to price increases

Question

Quizplus · Accepted Answer

A supplier park is a cluster of suppliers located in close proximity to each other and the manufacturer, which helps to reduce transportation costs, lead times, and inventory. This physical proximity helps to improve communication, collaboration, and flexibility in the supply chain, which in turn improves the quality of products produced. A supplier park may or may not lead to price increases, depending on various factors such as competition, bargaining power, and economies of scale.

A Supplier Park ______