Supply Chain

Everyone will go to Heaven. Jesus Christ will save the whole world through faith alone. That's the most important takeaway. However, I will try to explain it with a math topic to serve as an allegory. This is an independent case to all the other cases I previously mentioned, and those likewise to all others. Here, I will focus on the math used in Supply Chain Management.

Rom. 11:36 "Of Him and through Him and to Him are ALL THINGS, to whom be glory forever. Amen"

Vertical Integration is when a company is directly responsible for the creation of their product. The organization has direct ownership over all the stages of the production process.

Psalm 14:5 But there they are, overwhelmed with dread, for God is present in the company of the righteous.

If God had a company called "Earth", then that would be vertically integrated. Because everything on Earth is created by Him. There is only one God, The Lord of Hosts. God never relies on external suppliers, because there are none apart from Him in terms of creation.

Matthew 13:55

“Isn’t this the carpenter’s son? Isn’t his mother’s name Mary, and aren’t his brothers James, Joseph, Simon and Judas?

So, let's say a carpenter had a sole proprietorship (a business completely run by the owner) where they build wooden tables. To get Raw Materials Inventory, they would go out into the forest and cut down trees to collect lumber. This would become Work-In-Process Inventory as they cut the logs into planks and legs. Finally, it's a completed wooden table and goes into Finished Goods Inventory.

2 Kings 22:6

the carpenters, the builders and the masons. Also have them purchase timber and dressed stone to repair the temple.

It is faith alone in Jesus Christ through which we are saved. People who do not believe, who have been yet to be saved, are like those trees in the forest. God created all the trees and forests in the world. Thus, He must use them for a purpose. As everything The Lord creates He does so with a plan for them.

Ephesians 1:10 As a plan for the fullness of time, to unite all things in him, things in heaven and things on earth.

Inventory Accounts (Types of Christians)

Raw Materials: Christians who have just been saved.

Work-In-Process: Christians learning how to perform good works.

Finished Goods: Christians in Heaven.

As soon as we are saved, we become a part of God's Inventory Account under the Assets section of His Balance Sheet, aka Statement of Financial Position. Notice how our works are only considered after we are saved. It is only through faith alone in Jesus Christ we are saved, not from works.

Ezra 1:9 This was the inventory: gold dishes 30 silver dishes 1,000 silver pans 29

Formula wise, the full Product Cost Flow is as such:

Beginning Raw Materials Inventory + Raw Materials Purchased = Raw Materials Available in Production.

Raw Materials Available - Ending Raw Materials Inventory = Raw Materials Used in Production.

Raw Materials Used in Production = Direct Materials.

Direct Materials + Direct Labour + Manufacturing Overhead = Total Manufacturing.

Beginning Work in Process Inventory + Total Manufacturing = Total Work in Process for the Period.

Total Work-in-Process for the Period - Ending Work-in-Process Inventory = Goods Manufactured.

Beginning Finished Goods Inventory + Goods Manufactured = Goods Available for Sale

Goods Available for Sale - Ending Finished Goods Inventory = Goods Sold.

While the Inventory is a Raw Material, Work-in-Process or Finished Good, it is stated on the Balance Sheet. But once it becomes a Good Sold, it moves to the Income Statment, aka Statement of Operations, aka Statement of Profit and Loss aka Statement of Financial Performance aka this statement has a lot of names because it's the most important one of the main 4 to investors.

Ecclesiastes 5:10

Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.

As a sample, here's what it looks like mathematically with numbers. Company is a Sole Proprietorship, so the dollar values used are small compared to big corporations. The currency used is CAD, since I'm from Canada.

I will not be using commas in the numbers as it's used as a decimal point in French, just to avoid confusion.

R: Raw Materials

W: Work-In-Process

F: Finished Goods

DM: Direct Materials

DL: Direct Labour

MO: Manufacturing Overhead

$ 100 r start + $ 200 r bought = $ 300 raw available

$ 300 r - $ 100 r end = $ 200 raw used.

$ 200 = $ 200 DM

$ 200 DM + $ 150 DL + $ 50 MO = $ 400 T Manu

$ 300 w start + $ 400 T Manu = $ 700 T wip

$ 700 T wip - $ 70 = $ 630 goods manu.

Beginning Finished Goods Inventory + Goods Manufactured = Goods Available for Sale

$ 800 f + $ 630 = $ 1 430 goods for sale

Goods Available for Sale - Ending Finished Goods Inventory = Goods Sold.

$ 1 430 - $ 1 430 = 0

So in that example, since Goods Available for Sale = Ending Finished Goods Inventory, then no goods were sold. If this were a company, it will be up to the marketing department to send over the data on how many products are still sitting on store shelves.

Psalm 100:5 For the Lord is good and His love endures forever; His faithfulness continues to all generations.

Faith alone in Jesus Christ gives us a platform to stand on, since our sins are washed away by Christ's holy blood from the cross. Once we trust in Him, we are immediately put into a position of being saved by Him that is impossible to get out of.

I mention Work In Process because being saved is just the beginning of our journey with God. When we are saved, all of our sins are covered, we have the once-saved-always-saved (OSAS) guarantee. But, as we exist physically, we are still in a world full of sin. Someone might be a saved Christian, but still struggle with the sin of this world. But in Heaven, we will all receive glorified bodies. Because everyone will come to believe in Jesus Christ through faith alone.

Romans 12:2 Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.

The Father, our creator, created the trees in the forest for which to be harvested in good.

The Son, our carpenter, will save us after we believe in Him through faith alone and start building us into the product He desires.

The Holy Spirit, the supervisor, watches over all the inventory in the product line and guarantees they will be used for something.

Matthew 28:19 Go therefore and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit,

Mandatory disclaimer: Faith alone in Jesus Christ saves, not baptism.

Managerial Accountants are often left with the decision to carry out a value chain activity internally or choose to buy externally. This is called the "Make or Buy Decision". But The Lord always makes products in His organization internally. It is the narrow way. All the pointless ways humans fail to do good works is the broad way. All of humanity will go through the narrow way. All will be saved by faith alone in Christ Jesus, amen.

Luke 12:42

The Lord answered, “Who then is the faithful and wise manager, whom the master puts in charge of his servants to give them their food allowance at the proper time?