Measurements in SC Performance & Influences

Measurements in SC performance & influences
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Measurements in SC performance & influences
The supply chain is a demand and supply network that encompasses distribution from the supplier to the consumer. It is characterized by the transformation of natural materials into finished products, which are made available to the customers. Property tax, therefore, being a levy on the property required to be paid by the governing authority on the area within which the property lies, will influence the supply chain in that it will increase the price of the property because the tax has to be included in the final price (Zhang & Huang, 2014).
VAT is a consumption tax that is indirectly imposed on goods whenever a value is added at each production or distribution stage. Therefore, it is a tax on consumer spending, where registered traders in the supply chain charges VAT on sales and a deduction is entitled on their purchases. Such individuals are entitled to claim an amount from the relevant authority. Final consumers incur a higher price on commodities purchased while the seller enjoys a high price (Zhang & Huang, 2014).
For inventory tax, one has to value stock at the end and the beginning of a financial period while using the accrual method for purchases and sales. High inventory tax on raw materials, work in progress will increase the cost of production which in turn will weigh heavily on the final market price set by the supplier.
Income tax is tax paid on earnings from e...