Final answer:
The manufacturing or production phase of the SCOR model is responsible for turning raw materials into finished products. Historically, the manufacturing sector has been pivotal in economic development, exemplified by bulk reducing industries that are oriented towards raw materials.
Step-by-step explanation:
The part of the Supply Chain Operations Reference (SCOR) model that involves turning raw materials into finished products is called the manufacturing or production phase. This phase concerns itself with the transformation of inputs, such as labor, capital, and raw materials, into final products that a firm wants to sell. For example, in pizza making, the inputs or factors of production include ingredients like flour, water, yeast for the dough, and tomatoes and spices for the sauce. Once these are processed and cooked, they result in the output—a finished pizza.
Historically, as the United States moved into the Industrial Revolution and through to the mid-20th century, the manufacturing sector was a key area of economic growth, where the workforce grew substantially. The secondary activity of converting raw materials into goods has been significant in the development of economies around the world. This is exemplified in bulk reducing industries, which are oriented towards raw materials due to their heavier or more expensive nature before the manufacturing process.