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Upstream can be described as the part which starts from Raw Material end till the factory/warehouse where the raw material will be processed.
Downstream can be described as the part from the processing end till the end customer.
Upstrean supply chain is a philosopy when we gather data from nodes and links and manufacture products i.e MPS based on demand patterns from. Whereas, down stream supply chain is when we have products based on customer needs and distribute them through distribution requirements planning. The whole upstream and downstream supply chain is controlled by a two supply chain tools called MRPII and sales and operations planning (S&OP).
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