Discussion Questions

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QUESTION #1 – Define the terms “third-tier supplier” and “third-tier customer”. Choose a company and describe their actual supply chain, which must include third-tier supplier(s) and third-tier customer(s). Provide a schematic diagram for that company’s supply chain, similar to Figure 1.1. presented on textbook page #6.


  • a)How can the Purchasing function help to improve the competitive edge of an organization?
  • b)Explain how manufacturers can leverage their suppliers to gain a competitive advantage.


  • a)Explain your understanding of “backward vertical integration” and describe the advantages of outsourcing compared to backward vertical integration.
  • b)Perform online research and provide three examples of organizations that applied backward vertical integrations and have incorporated that approach successfully. Provide the references you used for the online research.


  • a.What is the ABC inventory system and how is it used to manage inventory?
  • b.How important is it to conduct cycle counting? Justify.
  • c.

QUESTION #5 – Why is inventory management important to Supply Chain Management? Provide a comprehensive explanation.


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