Question: It is often claimed that large and powerful retailers exploit their suppliers. a. If this is the case, will it enlarge or reduce supply chain

It is often claimed that large and powerful

It is often claimed that large and powerful retailers exploit their suppliers. a. If this is the case, will it enlarge or reduce supply chain surplus? Explain your answer. (5 marks) b. Is a slotting fee (a payment from suppliers to the retailer to secure shelf space) an example of such exploitation? Explain why or why not. (10 marks) c. Identify two supply chain performance metrics in which large and powerful retailers are likely to outperform small local shops. For each, identify the governance mechanisms by which such advantage is gained. (10 marks)

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