Answer to Question 1
Adam Smith who is credited with providing the economic rationale for capitalism in his famous book, Wealth of Nations, stated that division of labor or labor specialization is limited by the extent of the market or volume of demand. In other words, economies and companies could improve their wealth by allowing specialization of tasks. The automobile assembly line is a good example of specialization wherein each individual performs a small task relative to the total product, but the output per individual is higher than if individuals each assembled a complete car. Smith's caveat, which is relevant here, indicates that the advantage is true as long as you can sell the increased volume that is produced. An important role of logistics is to help extend the market area of countries or companies through improved efficiency to lower the landed cost in new market areas.
This logic is even more apropos for supply chains. It can be argued that supply chains help to establish the limits of what is competitively possible in the market. In other words, the cost and value at the end of the supply chain determine a firm's ability to compete in a global marketplace.
Answer to Question 2
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