The goal Maximize Profit by satisfying customer requirement Profit: revenues costs Revenues: sales volume x price ■ Costs: a costs of goods sold(COGS); Inputs: Resources ( L, K, N, e)(logistics) Purchase/procurement/sourcing, transportation, warehousing, handling, Expenses a selling, general, administrative, depreciations,The Goal ◼ Maximize Profit by satisfying customer requirement ◼ Profit: revenues – costs ◼ Revenues: sales volume x price ◼ Costs: ◼ costs of goods sold (COGS); ◼ Inputs: Resources (L, K, N, E) (logistics) ◼ Purchase/procurement/sourcing, transportation, warehousing, handling, …… ◼ Expenses: ◼ selling, general, administrative, depreciations, …