What is a supply chain?

A supply chain refers to a comprehensive network that encompasses all the entities involved in the creation and delivery of a product or service. This network includes various suppliers, manufacturers, distributors, and retailers, all working together to ensure that a product moves smoothly from its initial creation to the final consumer. The core of the supply chain is the relationship between a company and its suppliers, highlighting the importance of collaboration and coordination in managing resources, information, and finances to optimize efficiency and meet customer demands.

By focusing on the linkages between a company and its suppliers, option B captures the essence of a supply chain, emphasizing how goods and services are sourced and produced, and how these elements interconnect to form a cohesive system. The supply chain plays a critical role in determining the flow of goods, the quality of products, and the responsiveness to market changes, which are vital for maintaining competitiveness in any industry.