4.1 Learning Outcomes:
Explain the concept of value and its implications for managing the supply chain.
Explain how logistic costs can be managed for better value creation.
4.2 Action Required:
The following table shows various costs incurred by a manufacturing company:
Cost
Variable cost
Fixed cost
Depreciation
Cost of shipping finished goods to customers
Wood used in manufacturing furniture
Manager’s salary
Electricity used in manufacturing furniture
Packing supplies for shipping products
Sand used in manufacturing concrete
Supervisor’s salary
Advertising cost
Executive’s life insurance
4.3 Test your Knowledge (Question):
Answer with a tick mark or write in words which is a fixed cost, and which one is a variable cost. Answer:
Reference
MGT 402.
5.2 Action Required:
Watch the short video at the following
Define the components of a successful business plan?
Answer;
Reference
