Costs In The Supply Chain Optimal Allocation Of Resources Under The Control Study

With the market environment changing, the competition among enterprises changes into the competition among supply chains. One enterprise's core competitiveness can be expressed by its status in the supply chain they join. It is important for supply chain to select the best enterprises as node enterprises. From optimizing resource allocation in those node enterprises, the supply chain can achieve expected benefits.This article analyses the theory of supply chain and supply chain cost, then combining value activities with target costing in a supply chain. This article chooses value activity's cost, time-consuming, enterprise's production capacity, quality and cost culture as constraint indices in the process of selecting supply chain's node enterprise. After selecting the node enterprises which can finish value activities, this article proposes the concept of SC(A,K,W,E). Based on this, this article sets supply chain's target cost based on the resources'cost that value activities used; distributes target cost among node enterprise based on value activities, and distributes sub-target cost based on project categories within one node enterprise; uses the dynamic programming model in the process of achieving target cost in one enterprise. Finally, a case describes the process of target costing based value activities in a supply chain.