Tier 2 Suppliers are suppliers that provide parts to Tier 1 suppliers, one step removed from the manufacturer.

Tier 2 Suppliers are suppliers that provide parts to Tier 1 suppliers, one step removed from the manufacturer.

• A. Tier 0 Suppliers
• B. Tier 1 Suppliers
• C. Tier 3 Suppliers
• D. Tier 2 Suppliers

Answer: (D)

Understanding supply chain tiers hinges on how far a supplier is from the final manufacturer. Tiers measure distance from the end product: the closer the supplier, the lower the tier number. A supplier that provides parts to a Tier 1 supplier sits two steps away from the manufacturer, which is the Tier 2 level. That two-step distance matches the definition of Tier 2. If a supplier sent parts directly to the manufacturer, they’d be Tier 1; three steps away would be Tier 3; and the manufacturer itself is the origin (often called Tier 0). This placement helps explain risk and responsibility as you trace parts back through the chain.

Understanding supply chain tiers hinges on how far a supplier is from the final manufacturer. Tiers measure distance from the end product: the closer the supplier, the lower the tier number. A supplier that provides parts to a Tier 1 supplier sits two steps away from the manufacturer, which is the Tier 2 level. That two-step distance matches the definition of Tier 2. If a supplier sent parts directly to the manufacturer, they’d be Tier 1; three steps away would be Tier 3; and the manufacturer itself is the origin (often called Tier 0). This placement helps explain risk and responsibility as you trace parts back through the chain.