Overview
The economics of supply chain management is crucial for businesses aiming to optimize their operations and reduce costs. By understanding the various components of supply chains, including logistics, inventory management, and supplier relationships, companies can enhance their efficiency and profita...
Key Terms
Example: The supply chain for a smartphone includes manufacturers, suppliers, and retailers.
Example: Logistics involves managing the transportation of goods from the warehouse to the customer.
Example: A high inventory turnover indicates efficient sales and inventory management.
Example: When buying a car, consider fuel, maintenance, and insurance costs.
Example: A car manufacturer uses JIT to reduce inventory costs.
Example: Regular meetings with suppliers can improve communication and trust.