Question

From Microeconomics Class 11 CBSE:-
Explain the stages of supply in detail.

Answer 1

Answer:

There are four stages in supply chain management.

1. Raw Material Suppliers: A supplier plays a critical link in supply chain. Forming the right partnership with right terms and polices helps develop a good relationship with the suppliers that will prove beneficial to all the parties involved.
2. Manufacturer: After acquiring the right raw material, the organization has to make careful decision on the manufacturing of the product. The demand for the product, technologies required and other important decisions have to be carefully managed at this stage.
3. Distributors: The distributors could include wholesalers and retailers. They are one of the important links between the organization and customers.
4. Customers: They are the most important and also the end-link in the chain. An organization should identify their customers and make sure that the product they produce is what is required.
5. Apart from the four aspects and stages, Logistics is also an important factor in the supply chain management. Logistics is to plan, execute and control various aspects of supply chain, starting from the point of origin to the point of consumption. For an organization to operate smoothly and profitable it is necessary for the supply chain to keep running.