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​F A supplier with a lower price can end up costing the buyer more than a...


​F

A supplier with a lower price can end up costing the buyer more than a supplier with a higher price because of the following except:

Increased transportation cost

Increased transaction cost

INcreased storage cost

Increased supply chain surplus
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Answer #1

The correct option is option D

Supply chain surplus

Supply chain surplus is also known as supply chain profitability. It means   value addition by supply chain function of a firm. Te formula to calculate the same is

SC surplus= Revenue- cost.

In this question if supply chain surplus is increasing it means the revenue is increasing or cost is decreasing. Both the scenario is profitable for the fir, so it is not a cause of increased cost for the firm

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