Name three elements included in the definition of supply
Answers
Answer:
The three elements included in the definition of the supply chain are :
1. Integration
Integration could be considered as the Brain and the Heart of the supply chain. Supply chain integration means communications between the rest of the supply chain to produce effective and timely results. Those who are in charge of integration would make sure that things are happening on time and on budget, without sacrificing quality.
2. Purchasing
Purchasing creates relationship with the suppliers, and identifies the quality and quantity of the necessary items. Those who are in charge of Purchasing keep an eye on the budget for things to be cost effective for the company and also making the quality standard.
3. Distribution
Those who are in charge of Distribution, ensures the logistics of communication between the clients , retailers or wholesalers. It is responsible for the product shipment and also delivering the shipment to the customers in given time.
Supply:
The supply refers the amount of product which are available for the customer.
The three key elements of supply is:
- Equilibrium price: The supplier bargain for higher price and the customer bargain for lower price, where both will settle for an equilibrium price.
- Inputs cost: If the cost of the input is lower, then the profit for the supplier will be higher.
- Other goods price: If the price of the competing supplier is lower, then the customers will move to more profitable supplier which will reduce the profit.