Interactive explainersThe reverse supply chain

Explore supply chains · Lesson 1 of 2

One product.
Many decisions.

Before a listening device reaches your day, many partners have to make their decisions fit. Follow a familiar-looking complete set to explore what supply chain management actually does.

One unit = one complete set Fictional unbranded listening device: two audio units and a charging case
An everyday listening device.
A fictional teaching example, not a real brand, design or production network.

01 · Follow the complete set

A chain is a network of decisions.

Tap a stage to see its job. Then switch the flow: the product is only part of the story. This is a simplified network; real supply chains have many branches.

Product flow → Materials and parts become complete sets, then move toward listeners. This simplified map omits many real-world branches and lead times.

Inside this stage

Materials

A complete set starts with materials such as metals and plastics. In our fictional example, purchasing teams agree on quality, quantities and timing before a material moves.

SCM connects the decisions

Supply chain management links planning, purchasing, making and logistics across partners, so supply and demand decisions fit together. A supplier’s quality problem can change factory output and a seller’s promise.

Logistics moves and stores

Logistics manages the movement and storage of goods and related information, including forward and reverse flows. It is an important part of SCM; SCM also connects these activities with sourcing, production and other business decisions.

Concept definitions are paraphrased from CSCMP. The listening-device network is a fictional example.

02 · Make one change

Where is the constraint?

Suppose the partners can act within one fictional week. Change a capacity and see whether listeners actually receive more complete sets.

A toy model, not a forecast. Zero opening inventory; no lead times, defects, backlogs or partial kits. Each input uses the same complete-set unit. Weekly fulfillment = the smallest of demand, supplier, factory and delivery.

Complete sets per week · whole numbers from 0 to 500

Complete sets wanted
Complete component kits
Complete sets made & tested
Complete sets delivered

80complete sets fulfilled
40complete sets unfilled
67%demand fulfilled (rounded)

Current capacity constraint: supplier. Raising another capacity alone will not increase fulfillment.

Try raising supplier capacity from 80 to 110. Which capacity limits output next?

Demand fulfilled = fulfilled ÷ demand × 100. With zero demand, the percentage is undefined and shown as —. Tied capacities can be joint constraints. Unfilled demand is not carried into another week in this model.

03 · Check your intuition

Think beyond the box.

Choose an answer for each question. Feedback stays in this page; there is no score submission or student record.

1. Which decision best illustrates supply chain management?
Read the explanation

SCM coordinates linked decisions across partners. Moving and storing goods is part of logistics, which sits within the wider SCM picture.

2. Keep the default example, but raise factory capacity from 100 to 150. How many sets can be fulfilled?
Read the explanation

Supplier capacity remains 80, so the extra factory capacity alone does not increase fulfillment.

3. Which flow can carry sales feedback upstream and specifications downstream?
Read the explanation

Information can move in both directions. The partners use it to coordinate what they buy, make and promise.

Sources & model boundaries

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