Define and Explain Supply Chain Management Systems, Supply Chain Simplification

question 82

Essay

Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts.

Understand the nature and behavior of fixed and variable costs, and their relationship to production volume.

Distinguish between direct and indirect costs, and their impact on product costing and pricing.

Comprehend the principles of customer orientation and its effect on production systems.

Grasp the importance and implementation of the balanced scorecard approach.

---

Definitions:

Present Value Equation

A mathematical formula used to determine the current value of a future amount of money or stream of cash flows given a specific rate of return.

FV

Future Value, the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest from previous periods.

Interest on Interest

The interest earned on the reinvestment of previous interest payments, commonly associated with compounding interest.