Glossary

Supply Chain-Related Finance and Planning Cost Element

Tags: Glossary

One of the elements comprising a company's total supply-chain management costs. These costs consist of the following: 1. Supply-Chain Finance Costs: Costs associated with paying invoices, auditing physical counts, performing inventory accounting, and collecting accounts receivable. Does NOT include customer invoicing/ accounting costs (see Order Management Costs). 2. Demand/Supply Planning Costs: Costs associated with forecasting, developing finished goods, intermediate, subassembly or end item inventory plans, and coordinating Demand/Supply.