Learning Team Reflection Supply Chain and Demand Model (1)

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Learning Team Reflection: Supply Chain and Demand Model
Team A
ECO/372
June 11, 2014

Learning Team Reflection: Supply Chain and Demand Model

What is a Supply Chain? Supply Chain Management?
A supply chain is a network of companies and services that have products available to consumers. For example, grocery stores hire farmers to raise vegetables and contract with different transportation agencies to bring them fresh into the stores. The supply chain gets “a good or service from the supplier to the customer (“Supply Chain”, 2014). Goods are often produced anywhere in the world, not necessarily at the local level; supply chain management makes them available in local neighborhood stores so we don’t have to travel overseas just for a pair of jeans, coffee, etc. They make sure we get the best quality and prices.
What is the Supply and Demand Model?
Supply and Demand is one of the most frequently used terms in economics (Heakal, 2014). More specifically, demand is referring to a quantity and how much of a product or service is desired by its consumers. Demand does not factor in want or desire; it is based on the number that consumers are ready and willing to actually pay money for. Supply is representative of how much the market can offer. Sufficient supply to meet steady demand leads to an equal balance in Supply and Demand.
What is the law of supply? Law of demand?
Law of supply is explained as the price of a good or service increases, the quantity of those goods or services offered will increase as well. If the price or good were to decrease, the quantity will also decrease ("Law of Supply", 2014). The "The Economic Times" (2014) website defines the law of demand as when other factors are constant, the price and quantity of any good and service are directly related. For example, when a price of a product increases, the demand for that product will…...

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