Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2012.271.278WangI Chiang32012123A 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.]]>Ahmadi, M. and E. Teimouri,2008832143220Ballou, R.H.,19924th Edn.,Beamon, B.M.,199855281294Beamon, B.M.,199919275292Ebrahimipoor, A.R., A. Alimohamadi, A.A. Alesheikh and H. Aghighi,2009941374145Ellram, L.M.,1991211322Emongor, R.A. and J.F. Kirsten,20066800809Gilbert, S.M. and R.H. Ballou,1999186173Hemalatha, M. and K. Vivekanandan,20081444450Jahnukainen, J. and M. Lahti,199959103111Kocsoy, M., K. Gurdal and M.E. Karabayir,200825169Kopczak, L.R.,19976226247Lawrence, F.B.,1999404351Lee, Y.C., T.M. Yen and C.H. Tsai,20088453461Alqedra, M., M. Arafa and M. Ismail,201147688Reaz, M.B.I., W.F. Lee, N.H. Hamid, H.H. Lo and A.Y.M. Shakaff,2009926132618Shafia, M.A., M. Fathollah and H. Ghazanfari,20099214225Shin, H., D.A. Collier and D.D. Wilson,200018317333Shirazi, B., H. Fazlollahtabar and D. Shafiei,2008831193128Tan, K.C., V.R. Kannan and R.B. Handfield,19983429Thomas, D.J. and P.M. Griffin,199694115Tyworth, J.E. and A.Z. Zeng,1998328997Wedel, J. and K. Lumsden,199541399404