Explain the Difference Between Logistics and Supply Chain Management

question 48

Essay

Explain the difference between logistics and supply chain management.

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Definitions:

Vertical Business Relationship

A business model where a company is involved in multiple stages of the production process, from raw material to final product, often through acquisitions or partnerships.

Financial Synergy

The potential increase in value and performance of two companies when they are merged, due to various factors like cost savings or revenue enhancement.

Pro Forma Cash Flows

Projected cash flows based on assumptions and estimates, used for planning and financial analysis.

Required Rate of Return

The minimum annual percentage earnings necessary for an investment to be considered acceptable, taking into account its risk and the time value of money.