Sachan et al.(2005) have studied the total SCC in the Indian
grain chain.They define the total Supply Chain Cost as the sum of
the farmer’ sprice,total additional cost,total mark-up and total
wastage. The farmer’sprice is the cost of growing and processing
the grain and themargin for the farmer.Additionalcostsinclude
the Inventory holding cost,Materials holding cost,Transportation
cost, Order processing cost and Packaging cost.Total mark-up cost
is the amount added to the cost price to get the selling price.Each
participant in the chain has his or her own mark-up percentage.
Total wastage may be due to one or more of the following three
reasons: obsolete losses,transit losses and pilfering losses. Su
et al.(2005) use a total SCC,which includes both the amortised
fixed cost and the periodic operating cost.
Sachan et al.(2005) have studied the total SCC in the Indiangrain chain.They define the total Supply Chain Cost as the sum ofthe farmer’ sprice,total additional cost,total mark-up and totalwastage. The farmer’sprice is the cost of growing and processingthe grain and themargin for the farmer.Additionalcostsincludethe Inventory holding cost,Materials holding cost,Transportationcost, Order processing cost and Packaging cost.Total mark-up costis the amount added to the cost price to get the selling price.Eachparticipant in the chain has his or her own mark-up percentage.Total wastage may be due to one or more of the following threereasons: obsolete losses,transit losses and pilfering losses. Suet al.(2005) use a total SCC,which includes both the amortisedfixed cost and the periodic operating cost.
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