Financial analysis and planning in logistical management

ABSTRACT In view of today's economic conditions, the competition between the firms has been increasing day after day. To stand against this, they begin to search new activities in their business agreement. In addition to this, customer orders have been changing. They want high quality, low cost and just in time response. These exchanges make administrators, to modify their business agreement as a logistical management. The responsibility of logistics is to deliverproduct to a customer within the contracted delivery time frame once a purchase order has been assigned. As a result of this exchange, the firms; met to crucial costing problems. In logistical administration costing problems have been tried to solve with a system called Activity- Based Costing. This system, provides more refined costing results against financial accounting. This causes system to be more prevalent. Because of this, the study has been focused on Activity- Based Costing System and its effects on a firm. To show yhe applicability of Logistical Management and Activity- Based Costing, a hospital selected and a real application has been accomplished. From this hospital, a service has been selected as apilot service and financial records of Activity- Based Costing System and financial accounting system has been compared. This compare shows that, the results taken from Activity- Based Costing is more refined. Thus, Activity- Based Costing System deploys and monitors, to the logistical administrators, the resources necessary to achieve the logistics mission. Keywords: Logistical management, customer orders, just in time response, activity-based costing system, overhead costs.