Reference no: EM133555125

Question

In our example, Wal-Mart provides the product, as well as pricing and availability information, to the customer. The customer transfers funds to Wal-Mart. Wal-Mart conveys point-of-sales data as well as replenishment orders to the warehouse or distributor, who transfers the replenishment order via trucks back to the store. Wal-Mart transfers funds to the distributor after the replenishment. The distributor also provides pricing information and sends delivery schedules to Wal-Mart. Wal-Mart may send back packaging material to be recycled. Similar information, material, and fund flows take place across the entire supply chain. In another example, when a customer makes a purchase online from Dell Computer, the supply chain includes, among others, the customer, Dell's Web site, the Dell assembly plant, and all of Dell's suppliers and their suppliers. The Web site provides the customer with information regarding pricing, product variety, and product availability. Having made a product choice, the customer enters the order information and pays for the product. The customer may later return to the Web site to check the status of the order. Stages further up the supply chain use customer order information to fill the request. That process involves an additional flow of information, product, and funds among.