Question

Identify the primary flows in a supply chain. Explain why there is flow in both directions and provide examples of each.

Answer 1

Answer:-

=> The primary flows in a supply chain are as follows:

(A) Flow of the product,

(B) flow of information

(C) Flow of funds.

Explanation as below:-

(A) Product flow:-

=>The finished goods go to different stages in the process of that. The raw material product go to finished good flows from the manufacturers to the vendors to the distributor to the retailer before it gets to the customer. If for some reasons the product has a defect, or the customer is not satisfied and returns the product. The flow goes in the other direction.

(B) Flow of information:-

=>In the process communication in between all party involve is crucial. Therefore, Information Flow occurs in both directions. For example, I am placing an order to the retailer. There will be information sharing from point of sale to distributor and to vendor and from vendor tor distributor to retailer to customer.

(c) Flow of fund:-

=>Any service provided in the process is paid for that. In order to obtain the good or service cash flows. As I order my product, I pay for it same as the retailer should pays to the distributor and the distributor pays to the vendor so forth and so one. At the mean time if I return that product I have right to a refund.