Cost of Goods includes the material cost, production cost, labor, supply chain, depreciation and overhead costs. Material cost needs long term cost reduction plans together with the suppliers. Labor cost reduction is built on production cycle time reduction. Innovation in supply chain logistics and warehousing contributes to overall COGs reduction. Manufacturing overhead cost reduction support lean operations and effectiveness though needs to be done with a lot of caution and sensitivity.
CITATION STYLE
Issar, G., & Navon, L. R. (2016). Cost of Goods (COGs). In Management for Professionals (Vol. Part F327, pp. 11–15). Springer Nature. https://doi.org/10.1007/978-3-319-20699-8_3
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