An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers.This is called
A)capacity aggregation.
B)inventory aggregation.
C)warehouse aggregation.
D)relationship aggregation.

Question

Quizplus · Accepted Answer

The term that best fits the given scenario is "relationship aggregation". An intermediary serves as a bridge between multiple buyers and sellers and reduces the number of direct relationships required between them. This, in turn, can boost the efficiency of the supply chain, reduce transaction costs, and increase the overall surplus. Hence, the correct answer is option D. Options A, B, and C are not relevant in this context.

An Intermediary Can Increase the Supply Chain Surplus by Decreasing