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Management Accounting: Production Planning

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Question:

Write about the Management Accounting for Production Planning.

 

Answer:

Supply Chain Stages:

Supply Chain Stages

The above diagram shows the effects of supply chain assimilation on computer manufacturers. The process of supply chain therefore contains different processes such as development of product, manufacturing, logistics, manufacturing and sales, sales and invoicing. Customer information is required at the time of development of products of the company that is the computers (Wieland and Handfield 2016). Production planning is also very important part of the manufacturing stage of the company. Again, transportation planning is also a crucial stage of logistics of logistics business. A competitive strategy of marketing and sales that is superior service and low costs is associated to marketing and sales of the company. Sales planning is also involved in the supply chain stage of sales. Invoicing quality and time can also be related to the stage of invoicing of the supply chain stage of computer manufacturing company (Stadtler 2015).

The current segment discusses the social and environmental impacts that can be observed during the two stages of the supply chain management that is the product development and logistics. The computer maker develops products with focus on consumers as per tastes and preferences of the consumers and needs of the consumers (Stadtler 2015). The tastes and preferences of consumers, consumers convenience is influenced by the society and culture of the community in which the business operates. Thus, it can be said that development of products is customer oriented and is driven by the societal factors. Again, the product development stage is also influenced by the mineral resources extraction processes, exploitation of the workers and pecuniary aspects of use of electricity, coal petroleum as well as natural gases for computer production. The logistics of computer manufacturing firm is also influenced by social and environmental factors such as power of direct vendors, indirect vendors, distributors and retailers (Stadtler 2015). The number of distributors, vendors and retailers of the company in the business environment in which company operates can determine their power and the price the company need to pay for their service. Again, exchange of proper information between all the buyers as well as the sellers in this network also affects logistics stage of the supply chain. The manufacturer regionally utilizing the parts that are imported from Bangladesh and China. Therefore, the political affairs of the home country and importing country also affects the operations of the firm. 

 

References

Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Wieland, A. and Handfield, R.B., 2016. Supply Chain Management. In 5th World Conference onProduction and Operations Management. P&OM 2016.

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