Question

E. Long answer questions:
1. Write the supply chain for a cotton shirt.
2. What are the advantages of selling the product
through intermediaries?
3. All people are not adequately compensated for
their role in the supply chain. Comment.​

Answer 1

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1. Seeds from seed shop-----------> fields-------> cotton from field to industry of yarn -----> yarn to cloth-------> cloth to shirt-------> further it goes for dying

2. There are several potential advantages of using an intermediary: More efficient distribution logistics. Overall costs (even taking into account the intermediaries' margin or commission) may be lower. Consumers may expect choice (i.e. the products and brands of many producers) at the point of sale.

3. There is evident inequality in the market chain of supply. The people involved in various activities at their levels have limited access to the information about the product or service in the chain. Persons at each level seek to maximize the revenue for those that are in the beginning of the supply chain. Thus, all people are not adequately compensated for their role in the supply chain.