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