Answer:
c. it specifies the roles and responsibilities of each member of the supply chain.
Explanation:
Supply chain management (SCM) can be defined as the effective and efficient management of the flow of goods and services, as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
The key principle of supply chain management can be best summed up as collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
Hence, the supply chain comprises of processes which are typically divided into four (4) cycles;
1. Customer order cycle: it involves the process of receiving an order from a customer, entry and fulfillment of orders.
2. Replenishment cycle: it includes receiving, entry and fulfillment of retail orders.
3. Manufacturing cycle: it includes the process of converting raw materials into finished products.
4. Procurement cycle: this includes shipping or receiving raw materials and production schedules.
The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.
