Match the type of aggregation with the the way the third party could increase the supply chain surplus When shippers want to send small quantities, the shipping company aggregates shipments across multiple shippers thus lowering the cost of each shipment below what could be achieved by the shipper alone. A third party can increase the supply chain surplus by aggregating stock across a large number of customers lowering overall uncertainty, improving economies of scale and allowing individual customers to reduce their safety stock $1.$ Capacity Aggregation $2.$ Inventory aggregation $3.$ Transportation Aggregation A third party can increase the supply chain surplus by Aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own $4.$ Warehousing Aggregation $5.$ Procurement Aggregation Aggregating storage needs over several firms increases supply chain surplus by by lowering real estate costs and lower processing costs. It is good to do this if storage needs are small or needs fluctuate over time. Aggregating buying for many small players facilitates economies of scale in ordering, production and transportation Question $50(1$ point$)$ Listen Which of the following would we not consider when deciding to outsource? The amount the third party will increase the supply chain surplus relative to performing the activity in$-$house. Risks involved in outsourcing. How outsourcing aligns with the company's strategy. The benefits of losing control of the activities outsourced. $$