Question

Natalie runs a business making handmade sweaters for cats. She has made the sweaters herself for a number of years, but the business has really grown, and she can no longer keep up with demand. Natalie needs to set up a supply chain in order to fulfill the incoming orders. She is new to this side of business and wants to know what a supply chain is. Which of the following best defines a supply chain?

a. It is a system of activities, people, organizations, and resources which provide feedback to companies for product enhancements and new product ideas
b. It is a system of activities, people information organizations, and resources participating in moving a service or product from supplier to customer
c. It is a marketing channel where different channel partners are evaluated in regards to the value offered to the customer.

Answer 1

A supply chain is a system involving activities, people, and resources engaged in moving a product or service from supplier to customer. It benefits from improvements in technology and transportation, allowing international trade to split the value chain and specialize.

Step-by-step explanation:

The supply chain is a comprehensive system encompassing activities, people, information, organizations, and resources. It's effectively responsible for moving a product or service from the supplier to the customer. With improving technologies in communication and transportation, supply chains can now extend internationally, meaning that production can be divided among different countries.

This diversification, known as splitting up the value chain, allows businesses to benefit from specializing in certain parts of the production process, boosting efficiency and innovation.

Maintaining an effective supply chain may necessitate addressing various issues through technological advancements, transportation improvements, and appropriate response mechanisms during emergencies. Also, the labor force is crucial in supply chains, and thus labor rights must be carefully considered.

A business, like Natalie's which produces handmade sweaters for cats, should consider these factors when setting up their supply chain to ensure that it is efficient, sustainable, and socially responsible.