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Research Article
Cost Reduction in Supply Chain Management by Shorter Purchasing Lead-time: A Case Study of Flexible Printed Circuit Boards

I-Chiang Wang

Journal of Applied Sciences, 2012, 12(3), 271-278.

Abstract

A shorter lead-time can capture competitive advantage and increased market shares. The purpose of this study was to explore the supply chain cost structure from a manufacturing perspective. By utilizing the proposed total cost reduction model, a guideline for an incentive program in which the vendor will be motivated to reduce the lead-time for each purchase can be obtained. Accordingly, competitiveness of the supply chain can be further enhanced. To illustrate this cost reduction approach, a case study of manufacturing flexible printed circuit boards with a sensitivity analysis was undertaken. From the results, two findings are obtained: First, purchasing lead-time reduction will result in cost advantages with regard to inventory, transportation, and capacity. Second, there exists a trade-off between transportation and expected capacity costs.

ASCI-ID: 35-4399

Cited References Fulltext

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