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Essay / Importance of Supply Chain Management - 1433
As we are very familiar with the concept of supply chain management which shows that SCM is the management of the flow of goods. It contains the movement and storage of raw materials, work-in-process inventory and finished goods from the point of origin to the point of consumption. Supply chain management has been defined as "the design, planning, execution, control and monitoring of supply chain activities with the aim of creating net value and building good configuration. The supply and demand model concerns the supply of the product as well as demand for the product or raw material. In this model, we can see that the current price of the product will vary depending on the demand for the product in the market. If consumer demand is high, the price will be high and vice versa. The laws of supply and chain are:- If demand increases and supply remains unchanged, a shortage occurs, resulting in a higher stability price. If demand decreases, supply remains unchanged, a surplus occurs, leading to a lower stability price. remains unchanged and supply increases, a surplus occurs, leading to a lower stability price. If demand remains unchanged and supply decreases, a shortage occurs, resulting in a higher stability price. How important is the supply and demand model in any business:- In a capitalist civilization, prices of products are not determined by a central authority but depend on how buyers and sellers interact on the markets. A market is just a collection of buyers and sellers of a particular good or service. The supply and demand pattern appears when market prices and production are determined. Buyer preferences include the demand side of the market, and seller preferences include the middle of the paper chain. Price affects the behavior of buyers of the good or service. For example, if a shipping company varies its rates based on the delivery time provided by customers, it is very likely that customers who value efficiency will order early and customers who value responsiveness will be willing to wait and to order just before you need a product. transported.• Globalization• Technology Information, as well as materials and money, must flow easily through the supply chain to enable planning, execution and evaluation of key functions. Each actor in The supply chain needs relevant information to make effective forecasts and predictions. operational conclusions. Existing supply chain information technologies enable rapid and cost-effective sharing of information between suppliers, producers, mediators, logistics service providers and customers..