Supply Chain and Demand Model ECO372 
Supply Chain and Demand Model
Valerie Prich
ECO/372
April 20, 2015
Matthew Angner
Supply Chain and Demand Model
The relationship between a supply chain and a supply and demand model is an important one. Without this relationship, business would not be able to be as organized with their business. Along with this, the businesses would also not be able to distribute their products to the consumers. The consumers who purchase the products do not realize all of the steps that come with this relationship. There needs to be an understanding of both the supply chain and the supply and demand model.
Supply Chain
Supply chain is the beginning of a business production. A business must have a supply chain in order to be able to receive products and to distribute them. The definition of supply chain is described as a certain network of other companies that works together to both serve the customer, and the consumer (Supply Chain, 2015). A supply chain is the main link between a business and its consumers. When a consumer purchases a product from a business it comes from a line of other companies. The product might come from one store that manufactures the product, then is sold to another store for a goods price, next it is sold to the customer at the price they are willing to pay. Supply chains are not always used to their full extent. Many companies are unaware of what really goes on within their supply chain. There are businesses that do not know the information flow of the supply chain, and only really focus on the visible aspect. This results in the miscommunication and the potential to use the supply chain to its maximum potential (Handfield, 2011).
According to "What Is A Supply Chain?" (n.d), a supply chain consists of all parties involved, directly or indirectly, in fulfilling customer request. The process consist of: a customer wanting a product in a store, the customer choosing the store, the store stocking the items on their shelves, the distributor the
Valerie Prich
ECO/372
April 20, 2015
Matthew Angner
Supply Chain and Demand Model
The relationship between a supply chain and a supply and demand model is an important one. Without this relationship, business would not be able to be as organized with their business. Along with this, the businesses would also not be able to distribute their products to the consumers. The consumers who purchase the products do not realize all of the steps that come with this relationship. There needs to be an understanding of both the supply chain and the supply and demand model.
Supply Chain
Supply chain is the beginning of a business production. A business must have a supply chain in order to be able to receive products and to distribute them. The definition of supply chain is described as a certain network of other companies that works together to both serve the customer, and the consumer (Supply Chain, 2015). A supply chain is the main link between a business and its consumers. When a consumer purchases a product from a business it comes from a line of other companies. The product might come from one store that manufactures the product, then is sold to another store for a goods price, next it is sold to the customer at the price they are willing to pay. Supply chains are not always used to their full extent. Many companies are unaware of what really goes on within their supply chain. There are businesses that do not know the information flow of the supply chain, and only really focus on the visible aspect. This results in the miscommunication and the potential to use the supply chain to its maximum potential (Handfield, 2011).
According to "What Is A Supply Chain?" (n.d), a supply chain consists of all parties involved, directly or indirectly, in fulfilling customer request. The process consist of: a customer wanting a product in a store, the customer choosing the store, the store stocking the items on their shelves, the distributor the
References: Colander, D. C. (2013). Economics (9th ed.). Retrieved from The University of Phoenix eBook Collection database. Handfield, R. (2011). What is Supply Chain Management?. Retrieved from http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management Supply Chain. (2015). Retrieved from http://www.businessdictionary.com/definition/supply-chain.html What is a Supply Chain?. (n.d.). Retrieved from http://www.sbaer.uca.edu/publications/supply_chain_management/pdf/01.pdf