What defines the 'Chain of Production'?

The 'Chain of Production' is defined as the sequence of a product passing through the three sectors of production: primary, secondary, and tertiary. This process encapsulates the entire pathway that a product takes from its initial raw materials to its final delivery to consumers, highlighting the different stages involved at each sector.

In the primary sector, raw materials are harvested or extracted, such as agriculture or mining. In the secondary sector, these raw materials are transformed into finished goods through manufacturing processes. Finally, the tertiary sector involves the services that support the delivery and distribution of these products to consumers, such as retail or logistics.

This overarching view emphasizes how interconnected and dependent each stage is on the others and provides insight into the efficient functioning and organization of the economy as a whole. By understanding the Chain of Production, businesses can analyze their operations and identify areas for improvement or potential cost savings.