Research on supply chain cost management—Based on activate-based costing

The competition among retailers tends to be a competition existing among their unique supply chains. The paper traces the development and suggests analyzing the enterprise´s work flow to establish its activity center according to characteristic of retailer industry. Finally improve the effectiveness of core company in supply chain management. The paper use Activity-Based costing method to set model and establish different Activity Centers according to different work procedures. Starting from the bottom activity of the model, the method calculates all levels of the cost which belongs to different work flow. Adding all the costs will obtain the product cost on the whole supply chain.