What type of flows connect each stage in a supply chain?

The correct answer highlights the comprehensive nature of supply chain interactions, which include information flows, product flows, and funds flows.

In a supply chain, information flows are crucial because they enable all parties to make informed decisions based on real-time data—such as inventory levels, order status, and customer demand. These flows allow for better coordination and responsiveness within the supply chain, contributing to overall efficiency and effectiveness.

Product flows refer to the actual movement of goods from suppliers to manufacturers, from manufacturers to distributors, and finally to customers. This flow is the tangible aspect of supply chain operations, as it involves physical items being transferred between different entities in the supply network.

Funds flows relate to the financial transactions that occur as goods are produced, transported, and sold. Managing funds flow is vital for ensuring that all parties involved in the supply chain can meet their financial obligations in a timely manner, facilitating smooth operations.

In contrast, the other answers either omit a necessary component or focus too narrowly on specific types of flows. Therefore, the selection is accurate as it encapsulates the full scope of interactions that connect each stage in a supply chain.