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NotesBusiness ManagementTopic 5.6Supply chain management
Back to Business Management Topics
5.6.11 min read

Supply chain management

IB Business Management • Unit 5

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🔗 Supply Chain Management

Definition: Supply chain management (SCM) involves coordinating all activities from sourcing raw materials to delivering the final product to the customer.
  • Local supply chains — shorter lead times, easier quality control, lower transport costs
  • Global supply chains — lower costs but more complexity and risk
  • Key decisions: make or buy, single vs multiple suppliers, local vs global sourcing
  • Technology (ERP systems, tracking) helps manage complex supply chains
Apple designs in California but manufactures in China. COVID exposed the risks of relying on distant suppliers.

Related Business Management Topics

Continue learning with these related topics from the same unit:

5.1.1What is operations management?
5.1.2Business sectors in operations
5.2.1Job, batch and flow production
5.2.2Cellular manufacturing
View all Business Management topics

Improve your exam technique

Command terms, paper structure, and mark-scheme tips for Business Management

IB Exam Questions on Supply chain management

Practice with IB-style questions filtered to Topic 5.6.1. Get instant AI feedback on every answer.

Practice Topic 5.6.1 QuestionsBrowse All Business Management Topics

How Supply chain management Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to Supply chain management.

AO1
Describe

Give a detailed account of processes or features in Supply chain management.

AO2
Explain

Give reasons WHY — cause and effect within Supply chain management.

AO3
Evaluate

Weigh strengths AND limitations of approaches in Supply chain management.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide →

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5.5.5Target profit and target price (HL only)
Next
Production planning methods5.6.2

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