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Chapter 10

Supply chain management

4.1 What is a supply chain?

A supply chain encompasses all activities and information flows
necessary for the transformation of goods from the origin of the raw
material to when the product is finally consumed or discarded. Supply
chains can be either push or pull in nature.

An example supply chain for the metal used by a car manufacturer is shown below:

Ore mining
company

Upstream supply
chain

Component
manufacturer

Car
manufacturer

Car dealerships

Downstream supply

chain

Consumer

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