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

Managers salary

Electricity used in manufacturing furniture

Packing supplies for shipping products

Sand used in manufacturing concrete

Supervisors salary

Advertising costs

Executives life insurance

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