Question 47

The chemical manufacturer is a tier two supplier to the detergent manufacturer.

In the supply chain described, the chemical manufacturer provides plastic to a container manufacturer, who then supplies the containers to the detergent manufacturer. This positions the chemical manufacturer one step removed from the final product, making it a tier two supplier.

A) Tier one supplier

A tier one supplier directly supplies goods or services to the primary manufacturer, in this case, the detergent manufacturer. Since the chemical manufacturer does not supply directly to the detergent manufacturer, this option is incorrect.

B) Tier three supplier

A tier three supplier is typically further down the supply chain, supplying to tier two suppliers. The chemical manufacturer, supplying to the container manufacturer, is positioned as a tier two supplier, making this option incorrect.

C) Tier four supplier

A tier four supplier would be even further removed from the final manufacturer than a tier three supplier. Since the chemical manufacturer is directly involved in the supply chain to the container manufacturer, this option is also incorrect.

D) Tier two supplier

This option is correct as the chemical manufacturer supplies materials to the container manufacturer, which then supplies the product to the detergent manufacturer. Thus, the chemical manufacturer is one step away from the final product, positioning it as a tier two supplier.

Conclusion

The correct classification of the chemical manufacturer as a tier two supplier is based on its direct supply relationship with the container manufacturer, which in turn supplies the detergent manufacturer. All other options misrepresent the level of the chemical manufacturer's involvement in the supply chain, confirming that tier two is the accurate designation.