Which of the following phrases most accurately describes the complete flow of demand information?

The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand information?
A . From supplier to customer
B . From customer to manufacturer
C . From customer to supplier
D . From supplier to manufacturer

View Answer

Answer: C

Explanation:

The flow of demand information in a supply chain starts with the customer, who initiates demand for products or services. This demand information then moves upstream to the manufacturer, who needs to know the customer demand to plan production and control inventory. From the manufacturer, the demand information continues upstream to the supplier, who provides the raw materials or components needed for manufacturing. Therefore, the complete flow of demand information is accurately described as moving from the customer to the supplier.

Reference: Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

Pearson.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi,

E. (2008). Designing and Managing the Supply Chain:

Concepts, Strategies, and Case Studies. McGraw-Hill.