Final answer:
The purpose of the _____supply chain_______ is to provide a firm with component parts and raw materials. The __supply chain__________ also must ensure that high-quality products are provided on time, at a reasonable price.
Step-by-step explanation:
The purpose of the supply chain is to provide a firm with component parts and raw materials. The supply chain also must ensure that high-quality products are provided on time, at a reasonable price.
The supply chain's effectiveness is critically important to a business's overall success, as it directly affects production costs, product quality, and delivery times.
In the 1980s, just in time delivery was a key Japanese business innovation adopted by American car manufacturers. This approach to supply chain management involves having parts delivered exactly when they are needed, reducing the need for warehousing and improving quality control.
Efficient and responsive supply chains are necessary to meet the demands of production functions, where a firm transforms economic inputs like labor and raw materials into goods and services.
Additionally, firms are driven by profits, which are the difference between revenues and costs. The ability to obtain raw materials at lower costs can increase a business's profitability.
However, competition among businesses can lead to lower prices and improved quality as businesses strive to attract consumers. Effective supply management, therefore, is vital in this competitive landscape.