Research on Relations between Management Factors of SEM-based Production System and Marketing System

Production and marketing systems are not isolated; their managerial elements are interrelated with each other. This paper applies Structural Equation Model (SEM) to explore the interrelation between managerial elements of production and marketing systems. Firstly, it analyzes the elements,of two systems; then sets up a hypothesis on the relationship between the core elements and establishes a model of SEM. Finally, with case study it proves that elements of the two systems are interrelated and enterprises need to have whole optimization so as to make an optimal decision.