Making Information Flow and Making Merchandise Flow

Five interrelated activities emerge in supply chain management: making information flow, making merchandise flow, managing inventory, designing the supply chain, and managing the relationships among supply chain partners. So$,$ for example, when a customer goes to her local Best Buy to purchase a smart TV$,$ it triggers action throughout the entire supply chain. It is possible that by the time she exits the store, the manufacturer has already ordered the production of another smart TV$.$ Tens of thousands of smart TVs are sold every day around the world, and each time they are, this same supply chain transaction occurs.

This activity is important because firms rely on supply chain management to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain and to minimize system$-$wide costs while satisfying the service levels that customers require.

The goal of this activity is to understand and recognize which action takes place at each point of the supply chain.

Match the various information flows to the smart TV purchase steps.

$1$

$2$

Store to

Manufacturer to Manufacturer

$3$

Distribution Center

$4$

Buyer to and Buyer Manufacturer

$5$

Store to Distribution Center