Production chain

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The production chain (or production series ) in the production of goods is the entirety of all branches of the economy , which includes all processing stages from product development to prefabrication and suppliers as well as further processing to the end product . The counterpart in retail is the sales chain , in distribution logistics the supply chain .

General

The production chain , together with distribution and supporting services, forms the production system , with the added value having to take place within the production system. During production, a production chain in a company consists of several process-technically self-contained process sections , which must be followed by further process sequences up to the manufacture of the end product. The most important feature of a production chain is the spatial concentration of the process sections and the functional interdependence of the economic entities within this area. If the vertical range of manufacture is low , other companies take over the necessary process steps. That is why the production chain is an issue in both business administration and economics .

Business administration

The production chain is the sequence of individual production processes , in which at least one output becomes the input of the subsequent process. In this closed production chain, there is a cyclical production, whereby a distinction must be made between single-stage and multi-stage cycles. The technical linking of individual sequences can lead to production disruptions having an immediate impact on the entire production chain and causing bottlenecks .

Economics

The basic materials such as iron, leather or cellulose are combined with different production chains up to the end product, so that each company functions as an intersection of several such production chains. The production chain in the oil and natural gas industry, for example, is generally divided into the processing stages upstream ( German  source ), midstream ( German  transport ) and downstream ( German  final supply ). Upstream records the activities associated with the prospecting of deposits and their development related. Midstream brings together activities in transport , refining , processing and wholesale . Downstream is distribution to the end consumer .

See also

literature

Individual evidence

  1. Kerstin Reiff, Local Production Systems in Southern Italy , 2002, p. 19
  2. Eike W. Schamp , Industry in the Age of Globalization , in: Geographie heute, vol. 18/155, 1997, p. 7
  3. Harald Dyckhoff, Betriebliche Produktion , 1994, p. 293
  4. Harald Dyckhoff, Betriebliche Produktion , 1994, p. 294
  5. Hubert-Günter Striefler, Streit um Striks , 1986, p. 166
  6. Wolfgang Korndörfer, Fundamentals of Business Administration , 1993, p. 13
  7. Jonas Grätz, Russia as a global economic player , 2013, p. 95