Which statement best distinguishes supply chain management from logistics?

• A. SCM handles only the movement of goods, while logistics handles planning and sourcing.
• B. SCM is the same as logistics.
• C. Logistics encompasses the entire network including supplier relations and returns.
• D. SCM covers planning, sourcing, production, and flows across the entire network, while logistics focuses on movement and storage of goods within the network.

Answer: (D)

The main idea tested is how supply chain management differs from logistics in scope. Supply chain management is about coordinating and optimizing every step that moves a product from supplier to customer. It includes planning what to produce and when, selecting and partnering with suppliers, coordinating manufacturing, and managing the flows of materials, information, and finances across the entire network of suppliers, factories, warehouses, distributors, and customers. Logistics, on the other hand, focuses on moving and storing goods within that network—transportation, warehousing, inventory and related activities.

Why this option fits best: it correctly states that supply chain management covers planning, sourcing, production, and the flows across the whole network, while logistics concentrates on the actual movement and storage of goods inside that network. The other statements confine SCM to just movement, claim they are the same, or place logistics as covering the entire network including supplier relations and returns, which misrepresents the broader integrative role of SCM.