Eco 372 Supply Chain And Demand Model Research Paper

Supply Chain and Demand Model
Michael Alberd, Sean Parrett, Patrice Watkins, Anndrea Barr
ECO/372
March 30, 2015
Kathleen Byrne
Supply Chain and Demand Model
Supply chains and demand chains have different purposes but are similar in that they both need to work very closely together in order to be successful. Stakeholders need to possess a way to see what consumers will want to purchase and how much they will pay for it in the future. Stakeholders can be provided with a projection of information needed to be successful in the future by comparing and contrasting real-time models of supply and demand chains. These models are alike in the fact that they are both used to predict the future of consumer 's wants and needs.

What is Supply
The supply chain encompasses three functions; the provision of materials to a manufacturer, the manufacturing process and distribution of the final goods through a network of distributors and retailers to the customer ("Canadian Supply Chain Sector Council", 2015). The companies and organizations involved in any of the three functions of this process are linked to each other through a supply chain. To assist in the flow of products, information is shared between the companies and organizations (supplier to customer) in the supply chain to integrate and coordinate activities to meet the current and future needs ("Canadian Supply Chain Sector Council", 2015).

Describe what the Supply and Demand Model is and how it works
The supply and demand model is information that shows the demand side (buyer 's preferences) and the supply side (seller 's preferences) of the market, which then helps determine market prices and production quantities. Supply and demand model applies to competitive markets only, which are markets that not only have many buyers and sellers, but they also want to buy and sell similar products. When reviewing a supply and demand model the point where supply and demand come together is what prices and quantities are determined by. Also, it is important for one to remember that quantities
When a company puts together the information, then they can predict how much of a product needs to be supplied in order to keep up with the demand. This is useful in the sense that the company never has to worry about running out of their product and needing to borrow money from a lender in order to keep up with the needs of the customers. When a company uses the supply chain and demand model correctly, then they can determine if and when they can fluctuate the prices of their goods to meet the money supply at that given