QUESTION
Give an example of a supply chain containing at least three links.
What will be an ideal response?
ANSWER
Answer: Answers will vary. Sample answer: A logging company supplies logs to a saw mill, which supplies boards to a lumber yard, which supplies boards to a furniture maker, which supplies dining room tables to furniture stores, which supplies dining room tables to customers
Explanation: You can visualize the movement of supplies into a production facility as representing a long chain involving many suppliers—a supply chain. In this view, one company’s input becomes another company’s output. The JCPenney dress shoes you might buy were supplied by shoemaking factories, which in turn were supplied by leather tanners, which in turn were supplied by cattle ranchers, all representing the supply chain.
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