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Savings in the supply chain exert more leverage as the firm has a lower net profit margin.
Supply Chain
The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
Net Profit Margin
A financial ratio indicating the percentage of revenue that remains as net profit after all expenses are deducted from total revenues.
Leverage
The use of various techniques or borrowed capital (debt) to increase the potential return of an investment.
- Gain insight into the vital importance of managing inventory and the repercussions on a firm's cost strategy through supply chain dynamics.
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Learning Objectives
- Gain insight into the vital importance of managing inventory and the repercussions on a firm's cost strategy through supply chain dynamics.
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