Logistic management
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 costs | ||
| 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.
4.4 Instructions
Answer the question in the test your knowledge section.
Post your answer on the discussion board using the discussion link below
Explain the concept of value and its implications for managing the supply chain. Explain how logistic costs can be managed for better value creation.
