what are the cost involved in the supply chain?
supply chain starts from the supplier until the product reaches end customer.
supplier ----purchasing-----production---distribution----end customer. this is how the supply chain works.
Here most of the supply chain costs are occurred as "INVENTORY COST".
another cost is "LOGISTICS COST" . it is the most important cost, because the transportation of raw materials, semi finished goods and finished goods. so the logistics cost plays a major role in supply chain.
Inventory TurnOver is nothing but the how many times the inventory has been sold and replaced over a period of time.
IOT = COST OF GOODS SOLD/ AVERAGE INVENTORY.
supplier ----purchasing-----production---distribution----end customer. this is how the supply chain works.
Here most of the supply chain costs are occurred as "INVENTORY COST".
another cost is "LOGISTICS COST" . it is the most important cost, because the transportation of raw materials, semi finished goods and finished goods. so the logistics cost plays a major role in supply chain.
Inventory TurnOver is nothing but the how many times the inventory has been sold and replaced over a period of time.
IOT = COST OF GOODS SOLD/ AVERAGE INVENTORY.
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