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Journal of Applied Sciences
  Year: 2012 | Volume: 12 | Issue: 3 | Page No.: 271-278
DOI: 10.3923/jas.2012.271.278
 
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Cost Reduction in Supply Chain Management by Shorter Purchasing Lead-time: A Case Study of Flexible Printed Circuit Boards

I-Chiang Wang

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.
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How to cite this article:

I-Chiang Wang , 2012. Cost Reduction in Supply Chain Management by Shorter Purchasing Lead-time: A Case Study of Flexible Printed Circuit Boards. Journal of Applied Sciences, 12: 271-278.

DOI: 10.3923/jas.2012.271.278

URL: https://scialert.net/abstract/?doi=jas.2012.271.278

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