Week 4: Interactive activity 4.1 Learning Outcomes: Explain the concept of value

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Week 4: Interactive activity
4.1 Learning Outcomes:
Explain the concept of value

Week 4: Interactive activity
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:
CostVariable 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

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