Explain the Three Major Flows in a Supply Chain

question 33

Essay

Explain the three major flows in a supply chain.

Understand the economic impacts of seasonal changes on supply and demand.

Evaluate the effects of external shocks (natural disasters, technological advancements) on market dynamics.

Understand how changes in supply and demand affect market equilibrium prices and quantities.

Analyze the impact of substitutes and complements on market dynamics.

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Definitions:

Cost of Goods Sold

The outlays directly connected to the making of goods a company markets, comprising both material and labor expenses.

Net Income

The remaining income of a company after subtracting all costs and taxes from its total income.

Inventory

A collection of goods or materials a company holds for sale or production.

Consolidated Financial Statements

Financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries.