Question

explain how the level if coordination between a food manufacturer and downstrean foods retailers can benefit consumers and how it can harm consumers

Answer 1

There should be high level of coordination between a food manufacturer and the retailers because it leads to the smooth working of the supply chain and a disruption of this supply chain can cause hard to the consumers as at each stage the worker or retailer has his own personal motive of maximizing its profits and till the product reaches the consumer it may be priced very high and the consumers end up paying more than it should and this also effects the demand of the good.

Another harm that is caused to the consumers is the wait time increases as the number of hands the product is passed down by increases.

But on the plus side the consumers can get a better product because the retailers usually have better knowledge of the market they know better the wants and needs of the consumer and hence they can supply the consumer with the products they demand.