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Supply Chain Manufacturers

Manufacturers have to establish parameters for what is to be produced and in what quantity how does utilizing a supply contract aid both parties in terms of their roles/responsibilities involving the supply chain?

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A supply chain consists of all parties that are involved directly or indirectly in ensuring that the customer's request is fulfilled. The supply chain does not only include the manufacturers and suppliers but involves transporters, the warehouses, retailers and even the customers. In each organization such as the manufacturer, the supply chain always includes all the functions involved in the receiving and in filling the customer's request. The functions in the supply chain include, but are not limited to, the production of new product, marketing, operations, distribution, finance and even customer care or service (What is a Supply Chain, n.d.). A supply chain is a dynamic system that evolves over time. Actually, not only the consumer demand and supplier capabilities change over time, but the supply chain relationships also evolve with time (Introduction to Supply Chain, n.d.).

Supply contracts are the types of contracts that are used in establishing the terms of a working relationship between a vendor and a customer. It is mostly important for the purpose of locking in discounted pricing and ...

Solution Summary

Supply chain manufacturers are examined. How these utilize a supply contract and their roles and responsibilities involving the supply chain.