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|
|Cost of shipping finished goods to customers|
|Wood used in manufacturing furniture|
|Electricity used in manufacturing furniture|
|Packing supplies for shipping products|
|Sand used in manufacturing concrete|
|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 the question in the test your knowledge section.
Post your answer on the discussion board using the discussion link below