The elasticity of supply measures the responsiveness of a change in quantity supplied to a change in price. If price increases – firms generally find it more profitable to supply a good. So an increase in price leads to higher supply.

In business and economics, elasticity refers to the degree to which individuals, consumers, or producers change their demand or the amount supplied in response to price or income changes. It is predominantly used to assess the change in consumer demand as a result of a change in a good or service’s price.

The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.

The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Demand is elastic when there are close substitutes.

Studying supply chain management empowers you to keep the wheels turning smoothly — both in everyday situations and in times of crisis. Whatever your relationship to the supply chain, gaining a better understanding of the flow of production and distribution will empower you to: Collaborate more efficiently.

Decreases Total Supply Chain Cost – Manufacturers and retailers depend on supply chain managers to design networks that meet customer service goals at the least total cost. Efficient supply chains enable a firm to be more competitive in the market place.

A supply chain is a network between a company and its suppliers to produce and distribute a specific product or service. The functions in a supply chain include product development, marketing, operations, distribution, finance, and customer service.

While supply chain is a very broad career field, it has 7 primary functional areas: Purchasing, Manufacturing, Inventory Management, Demand Planning, Warehousing, Transportation, and Customer Service.

A supply chain is defined as the entire process of making and selling commercial goods, including every stage from the supply of materials and the manufacture of the goods through to their distribution and sale. Successfully managing supply chains is essential to any company hoping to compete.

Are Supply Chain Management, Supply Network Management, Supply Management, Purchasing, Procurement, Logistics, Operations, Sourcing, Contract Manufacturing, Physical Distribution, etc. etc.