Learning Team Reflection: Supply Chain and Demand

Definitions
Supply Chain
According to Investopedia the Supply Chain is defined as the network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer.
Supply and Demand
In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising (dictionary.reference.com).

Relationship
The supply chain and supply and demand model are very similar because they both work hand and hand to be successful. Both models can be used to project much needed information of what consumers purchase and the amount they will pay for it. This is very useful to the stakeholders, involved in this process. Essentially these models can predict the consumer’s wants and needs for products on the market and for researching future products. The customers wants is what drives the supply chain. In the demand model the customer is at the center of all work, and will determine how the supply chain will operate. Both of these models work to maintain the amount of products and services sold buy companies and at the same time increase business profits while meeting or exceeding the consumer’s demands.

Resources:

Supply and Demand. Information retrieved from