Supply chain management is ________.
A) the principle of looking at the supply chain as a whole in order to improve the overall flow through the system
B) a limitation on the number of suppliers allowed to supply a particular company
C) complete movement of raw materials throughout a manufacturing or service facility
D) a cost-reduction program in which wholesalers and retailers are eliminated in an effort to entice consumers to purchase directly from manufacturers

Question

Quizplus · Accepted Answer

Supply chain management refers to the practice of looking at the supply chain as a whole in order to improve the overall flow of materials, products, and services through the system, from raw materials acquisition through production, distribution, and delivery to the end customer. It involves coordinating and managing the various components of the supply chain (including suppliers, manufacturers, distributors, and retailers) to ensure that products and services are delivered to customers in a timely, efficient, and cost-effective manner. B is incorrect because there is no set number of suppliers that is ideal for all companies; it depends on the specific situation and needs of the business. C is incorrect because this definition is more specific to material handling within a facility, not supply chain management as a whole. D is incorrect because this refers to a specific business model (direct-to-consumer), which does not encompass all aspects of supply chain management.

Supply Chain Management Is ________