supply chain

(noun)

A system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.

Related Terms

Examples of supply chain in the following topics:

  • Nature of Inventory

    • Inventories are maintained as buffers to meet uncertainties in demand, supply, and movements of goods.
    • Most large manufacturing and merchandising companies use this system to ensure adequate supplies are on hand for production or sale, and to minimize costly machine shut-downs and customer complaints.
    • Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this lead time.
    • Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.

  • Categories of Goods Included in Inventory

    • The term is used in production and supply chain management.
    • A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.

  • Special Considerations for Acquisition and Depletion of Natural Resources

    • Resources supplied by nature are subject to special accounting conventions to calculate cost and depletion.
    • Resources supplied by nature, such as ore deposits, mineral deposits, oil reserves, gas deposits, and timberstands, are natural resources or wasting assets.
    • The nutrient cycle between organisms form food chains and biodiversity of species.

  • Calculating Fair Value

    • Calculating fair value involves considering objective factors including acquisition, supply vs. demand, actual utility, and perceived value.

  • Adjustments

    • When this cash is paid, it is first recorded in a prepaid expense asset account; the account is to be expensed either with the passage of time (e.g. rent, insurance) or through use and consumption (e.g. supplies).
    • The adjusting entry would credit the asset (e.g. supplies) account and debit a related expense account (e.g. supplies expense)

  • Reporting Current Liabilities

    • For example, accounts payable for goods, services, or supplies that were purchased with credit and for use in the operation of the business and payable within a one-year period would be current liabilities.

  • Operating Expenses, Non-Operating Expenses, and Net Income

  • Accounting Methodologies: Amortized Cost, Fair Value, and Equity

  • Accounts Payable

    • Common examples of expense payables are advertising, travel, entertainment, office supplies, and utilities.

  • The Role of Accounting in the Business

    • Reports are tailored to the needs of individual managers, and the purpose of such reports is to supply relevant, accurate, timely information in a format that will aid managers in making decisions.