Asked by Michael Culham on May 07, 2024

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In a supply chain for commodity products,in order to maximize supply chain surplus,the objective of supply chain members should be to

A) supplement the product with a service.
B) maximize revenue.
C) minimize costs.
D) de-commoditize the product.

Supply Chain Surplus

The total value created throughout the supply chain, calculated as the difference between the value of the final product to the end consumer and the costs incurred in bringing the product to market.

Commodity Products

Fundamental products utilized in trade that can be exchanged with other products of a similar kind.

Maximize Revenue

A strategy or approach aimed at increasing the total income generated from sales of goods or services, before any expenses are subtracted.

  • Determine the positive outcomes of supply chain synchronization on maximizing the entire supply chain's profitability.
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sohail patelMay 09, 2024
Final Answer :
C
Explanation :
In order to maximize supply chain surplus, the focus should be on minimizing costs for each member of the supply chain. This can be achieved by streamlining processes, reducing waste, and improving efficiency. While supplementing the product with a service or de-commoditizing the product may also help to increase revenue, these actions can also increase costs and may not necessarily lead to a maximization of supply chain surplus. Maximizing revenue may also lead to increased costs, which is not desirable for maximizing supply chain surplus.