Question

Who are first-tier suppliers?

a. Outside agents that move items domestically or into foreign locations
b. The firm's most valued direct customers
c. The firm's primary goods and service suppliers
d. All of these
e. None of these

Answer 1

First-tier suppliers are the firm's primary goods and service suppliers, playing a crucial role in the supply chain by providing components or services directly to the company.

Step-by-step explanation:

The student asked who first-tier suppliers are. The correct answer to this question is c. The firm's primary goods and service suppliers. First-tier suppliers are companies that provide products or services directly to a company. These suppliers are a crucial part of the supply chain, as they are the immediate layer of suppliers from which the company directly purchases components or services that are necessary for their product or operation.

For instance, for an automotive manufacturer, first-tier suppliers would be the companies providing essential parts like engines or seats. These suppliers play a significant role in the manufacturing process and are often involved in collaborative product development, quality improvement initiatives, and cost management strategies.