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Supply chain management can effectively integrate enterprise resources, improve enterprise efficiency,so it is a key strategic factor to realize the long-term development goal of the enterprise. Based on the author's learning and practical experience, this paper first analyzed the characteristics of the operation and management of traditional Chinese medicine planting enterprises under supply chain management,then studied the basic status of Chinese herbal medicine, finally put forward the cost analysis model. The research results of this paper are of great significance to the establishment of a more efficient and orderly circulation system.

Analysis on the Operating Cost of Chinese Herbal Medicine Enterprises from the Perspective of Supply Chain