Define supply chain management. Illustrate a simple supply chain model with a sketch.

Supply chain management (SCM) refers to the strategic planning and coordination of all activities involved in sourcing, procurement, production, logistics, and distribution of goods and services from the point of origin to the point of consumption. The primary goal of supply chain management is to optimize the flow of materials, information, and finances across the entire supply chain network to meet customer demands efficiently while minimizing costs and maximizing profitability.

A simple supply chain model typically consists of several interconnected stages or entities, including:

1. Suppliers: These are the entities or organizations that provide raw materials, components, or services required for production. Suppliers play a critical role in the supply chain by ensuring the availability and quality of inputs needed for manufacturing or assembly processes.

2. Manufacturers: Manufacturers transform raw materials or components into finished products through various production processes. They are responsible for coordinating production schedules, managing inventory levels, and ensuring product quality and consistency.

3. Distributors/Wholesalers: Distributors or wholesalers act as intermediaries between manufacturers and retailers by purchasing products in bulk and distributing them to retailers or other downstream customers. They play a crucial role in inventory management, order fulfillment, and transportation.

4. Retailers: Retailers sell products directly to end customers through brick-and-mortar stores, online channels, or other sales outlets. They are responsible for managing customer relationships, merchandising, pricing, and promotions.

5. Customers: Customers are the ultimate end-users or consumers of the products or services provided by the supply chain. Their demand drives the entire supply chain process, influencing production schedules, inventory levels, and distribution strategies.

A simple supply chain model can be illustrated with a linear flow diagram showing the sequential movement of products or materials from suppliers to manufacturers, distributors, retailers, and ultimately to customers. Arrows indicate the direction of flow, while nodes represent each stage or entity in the supply chain network. The model can also include feedback loops, information flows, and decision points to depict the dynamic interactions and dependencies within the supply chain ecosystem. This visual representation helps stakeholders understand the relationships, dependencies, and potential bottlenecks in the supply chain and identify opportunities for optimization and improvement.