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Supply chain surplus information



Supply chain surplus is the value addition by supply chain function of an organisation. It is calculated by the following formula:

Supply chain surplus = Revenue generated from a customer - Total cost incurred to produce and deliver the product.[1]
  1. ^ Sunil, C. and Meindl, P. (2012) Supply Chain Management: Strategy, Planning and Operation. 5th edn. Essex: Pearson Education.

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