Question

2. Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford's point of view, Jones Manufacturing is a(n) __________ supplier. (Refer to Chapter 1) A. Echelon 1 B. Echelon 2 C. Tier 1 D. Tier 2

Answer 1

Answer:

D - Tier 2 supplier.

Explanation:

Tier 1 and Tier 2 suppliers usually refers to suppliers of the automotive industry. A Tier 1 supplier deals directly with the client (just like Lear Corporation and Ford in the example) whereas a Tier 2 suppliear supplies products to this Tier 1 suppliear (just like Jones Manufacturing and Lear Corp.) which then supplies to the OEM.