The Influence of Cost Factors on Revenue: A Case Study on the Vietnamese Retail Store Chains

In order to increase the competition in the dynamic market, businesses need to develop an effective supply chain system instead of optimizing within the business. A supply chain is considered as a successful tool when it operates smoothly, meeting the diversity of customers’ demand at an appropriate cost. From a management perspective, the supply chain is effective when the relationship between operating costs and revenue/profit is optimized. Therefore, analyzing the influence of component costs on the chain’s revenue is an important mission that should be carried out. In this paper, a linear regression model was formulated to determine the relationships between type of costs on revenue, specifically to analyze the impact of three type of costs, including marketing cost, transportation cost, and warehouse cost to revenue. The results will support managers to create effective strategies for warehouse operations, transportation, or marketing campaigns. The goal of these strategies is to increase profits by considering costs that have a strong impact on revenue.