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TLMT312 WEEK 7 FORUM - Assignment Example

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Tax strategies such as tax rates and tax structures have always been put into consideration, mainly when choosing between alternative site within regional and local geography. The tax incentives are being done through the property tax allowances. The incentives are used to…
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TLMT312 WEEK 7 FORUM
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TLMT312 WEEK 7 FORUM

Download file to see previous pages... ding value-added, property, income tax, and inventory as a strong consideration in the supply chain design introduces various issues for supply chain management. Such issues are tax policy dynamics, infrastructure concerns, and activity integration. Infrastructure supports supply chain activities. For example, infrastructure attracts supply chain value-added to both local and regional countries. Supply chain managers need to understand the implications of infrastructure issues and be able to communicate the issues with the planners in order to evaluate the design strategy (American Public University System).
Also, local and regional tax strategy regarding inventory may motivate production, thuspositively influencing supply chain. Some firms manage regional and local inventory from different countries. For example, Singaporepurchase products from local or regional production operation by having a Singaporean entity.The firms obtain the local or regional production operation at the standard production cost and the firms resell to markets around the world. Reselling will enable the firms to generate profits in a tax preferred environment, thus encouraging the need of supply chain.The use of local and regional tax strategy regarding income tax and property can have a greater impact on the supplychain. For example, in high-margin firms that produce large amounts of taxable income, their supply chain is positively affected since there will be a need of supplying more products. The rise in the supply of the products will help the firms in fetching more income tax from different countries (American Public University System).
In conclusion, supply chain and logistics managers need to understand the interactions and dynamics. Particularly, what is the possible impact of value-added, property, income tax, and inventory taxes on particular supply chain ...Download file to see next pagesRead More
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