The supply chain has been a major component of competitive strategy to enhance organizational productivity and profitability, and the supply chain is a relatively new and rapidly expanding discipline that is transforming the way that manufacturing and non-manufacturing operations meet the needs of their customers. This study aims to establish the role of management accounting in the development of supply chain performance in logistics manufacturing companies. The study applies a quantitative research methodology and uses a questionnaire method to collect the data. The study sample consists of 181 respondents. This study analyzes the data using the (SPSS) program. The results reveal a statistically significant relationship at the significance level (α≤0.05) between the management accounting, including the “target cost, value chain costing and quality costing” and supply chain performance in logistics manufacturing companies.

During the past few years, there have been tremendous attempts among various companies to implement the principles of supply chain management to increase their capabilities. Reduction in supply chain cost is an important element to support competitive advantage. However, to manage the cost of supply chain, managing target and order costs is essential. Reduction in both target cost and order cost is crucial to maintain reasonable supply chain cost, which directly influences the competitive advantage. Thus, the primary objective of this study is to support competitive advantage by the help of integration between target cost and order cost. To achieve this, quantitative research technique was adopted based on a survey technique and 300 questionnaires were distributed among the managerial employees of supply chain companies in Iraq. While analyzing the data through Smart PLS 3, it was revealed that any reduction in target cost and order cost could decrease the overall supply chain cost and this helps to sustain competitive advantage. Therefore, supply chain cost plays the mediating role to enhance competitive advantage through integration of the target cost and the order cost. Finally, this study is beneficial for supply chain companies to enhance competitive advantage through reduction in supply chain cost.

Bombardier Aerospace’s high performance aircrafts and services set the utmost standard for the Aerospace industry. A case study in collaboration with Bombardier Aerospace is conducted in order to estimate the target cost of a landing gear. More precisely, the study uses both parametric model and neural network models to estimate the cost of main landing gears, a major aircraft commodity. A comparative analysis between the parametric based model and those upon neural networks model will be considered in order to determine the most accurate method to predict the cost of a main landing gear. Several trials are presented for the design and use of the neural network model. The analysis for the case under study shows the flexibility in the design of the neural network model. Furthermore, the performance of the neural network model is deemed superior to the parametric models for this case study.