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What segment of the supply chain involves packaging, assembly, or manufacturing?

User Kyndigs
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Final answer:

The supply chain segment dealing with packaging, assembly, or manufacturing is where raw materials are transformed into final products, which happens in a global context. The splitting of the value chain and just in time delivery systems illustrate the complexity of modern manufacturing and supply chain processes. Bulk reducing and bulk gaining industries also provide insights into the strategic location choices for different manufacturing processes.

Step-by-step explanation:

The segment of the supply chain that involves packaging, assembly, or manufacturing is a critical aspect of the production process. This stage is where raw materials are transformed into finished products, or components are assembled to create a complete item. The global assembly lines demonstrate how assembly and manufacturing acts are performed internationally. For example, Apple designs its Mac prototypes in the United States, but the parts are manufactured and shipped from various countries for assembly in another, such as Malaysia, showcasing the importance of splitting up the value chain. Packaging and assembly become vital at this stage for the safe and efficient transport of the products to the markets.

The concept of just in time delivery in industries like automobile manufacturing minimizes inventory by having car parts delivered daily, requiring the manufacturing plants to be within a day's drive from the assembly plants to reduce the need for warehousing, which also exerts downward pressure on wages and benefits due to competition among suppliers. This entire process is a delicate balance as part of the supply chain, and disruptions at any point, such as strikes at sub-assembly plants, can halt the manufacturing at the main assembly plants due to the interdependency created by this system.

User Savitha
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