Question

Depict the supply chain with two upstream and two downstream tiers of a car manufacturer

Answer 1

Understanding the supply chain and its elements helps you to grab the attention and better focus on the effectivity and efficiency of the business. The upstream activities refers to the recieving of the inputs materials for the running and operational working of the business. The downstream activities refers to the production and also the distribution for the outputs that have been manufactured.

The two upstream tiers for the car manufacturer would be:

1. Recieving of the raw materials like iron, steel, tires and other metal items that are necessary for the manufacturing the car items.

2. Recieving the right technology and the engine to be installed in the car as the manufacturing of the car would take place to make it high tech and as per the latest demands.

The two downstream tiers for the car manufacturer would be:

1. Producing the whole unit of a car all ready and then selling the same to the retailers and car showrooms where the same car would then be sold off at the road price.

2. Producing not the whole unit but some essential parts of the cars and then sending the same parts for the assembling of the parts to another car parts assembler that would be further assembled and sold off for selling purpose.