ECONOMICS FROM A BUSINESS PERSPECTIVE1
Introduction
The main objective of this essay is to bring about a critical analysis of a journal paper
that focusses broadly on a current event that has been occurring in the field of supply chain
management with relation to supply and demand. The paper stated in this essay primarily
describes the challenges that are faced in the process of supply chain management for
managing the uncertain product demand. The theories of supply and demand are linked with
the subject proposed in the paper, about the ways by which the challenges are related to the
principles governing the supply and demand of any product or service.
Summary and critique of the paper – Economic analysis
The journal paper chosen for this essay focusses on the challenges that are faced by
supply chain management on a regular basis due to the improper forecasting of product
demand. This has primarily happened due to uncertainties that arise due to conditions that
were not previously forecasted by the management (Abou Maroun, Zowghi & Agarwal,
2019). It has been seen that supply chains are based on four essential functions, that is,
selling and distribution, production and procurement (Abou Maroun, Zowghi & Agarwal,
2019). The management controlling the operational department uses various tools and
techniques in order to focus on the disruptions that occur in the department which prevent the
smooth flow of goods. This is ensured in order to meet the expectations of the customers to
the highest level.
It has been seen that the supply chains used to work based on the principle of “make-
to-stock” which means making surplus amount of the product without prior knowledge of the
demand (Li & Zhang, 2015). In recent days, this principle has changed and the supply chains
believe on the principle of “make-to-order”, where the products are made catering to the
demand of the customer (Roh, Hong & Min, 2014). The challenge occur due to the decision

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