Supply Chain Management - networked thinking: money costs and alternative costs in sales



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In many industries joint actions are carried out between producers and traders. In the gastronomy and the industry, for example, events are organized.

Supply Chain Management - networked thinking: money and alternative costs in sales gastronomie

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Here writes for you: Erwin Langmann is a consultant for risk management with a focus on transport, logistics and supply chain management. Profile

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sales partnerships

Overview

For example, a beverage manufacturer supports gastronomy when larger events are organized. Frequently, an on-site sales representative of the beverage manufacturer will be there to discuss and plan the event together with the restaurateur.

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So also in this example: A summer festival of the restaurateur is on the program. The vendor expects vigorous support from the vendor, as well as a vendor's involvement in the joint project, since both can benefit.

Profit maximization? Wrong!

Overview

The seller wants to provide the customer with his possibilities for the summer festival under the arms and at minimal costs.

A profit-maximizing behavior is not possible with the classical cost accounting. It is also completely irrelevant whether the cost accounting

  • as process cost accounting,
  • as cover contribution calculation (DB invoice),
  • as a step-by-step fixed cost contribution calculation (fixed cost DB),
  • as a partial cost calculation or
  • as an overhead costing.

It can not specify the cost of unused opportunities in the classical form.

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Accuracy where there is none!

Overview

Even worse, the classic cost calculation simulates exactness where management and the entrepreneur can not be found. On the contrary:

The classical cost calculation leads us astray, if we are - mistakenly - convinced that it can show us the relevant costs in management decisions!

Alternative costs are missing

Overview

The classic cost calculation can not specify future-oriented values; it is, on the one hand, past-oriented and, on the other hand, it can not identify alternative costs.

In our case, the alternative costs consist of possible subsistence costs or possible overstock costs.

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The newspaper boy model

Overview

It can not be emphasized enough that the news vendor model (newspaper boy model) is an absolute quantum leap in the development of valuation methods in supply chain management and therefore can not be overestimated and classified.

With this model, the breakthrough has succeeded in calculating the costs of unused opportunities and then making optimal management decisions.


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