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

2012 ◽  
Vol 12 (3) ◽  
pp. 271-278 ◽  
Author(s):  
I-Chiang Wang
Mathematics ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 328 ◽  
Author(s):  
Bikash Dey ◽  
Biswajit Sarkar ◽  
Sarla Pareek

This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues and produces defective items. This model considers the reduction of the defective rate and setup cost through investment. A discrete investment for setup cost reduction and a continuous investment is considered to reduce the defective rate and to increase the quality of products. Setup and processing time are dependent on lead time in this model. The model is solved analytically to find the optimal values of the production rate, safety factors, optimum quantity, lead time length, investment for setup cost reduction, and the probability of the production process going out-of-control. An efficient algorithm is constructed to find the optimal solution numerically and sensitivity analysis is given to show the impact of different parameters. A case study and different cases are also given to validate the model.


Mathematics ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 357 ◽  
Author(s):  
Soumya Kanti Hota ◽  
Biswajit Sarkar ◽  
Santanu Kumar Ghosh

The effect of unreliable players on the supply chain management with a single-setup-multi-unequal-increasing-delivery-policy (SSMUID) along with a service-dependent demand and investment is discussed in this model. The manufacturer is unreliable which causes an increase of lead time and shortage. For solving the shortage problem and reducing lead time crashing cost (LTCC), an investment is utilized with the variable backorder price discounts. The number of transportation increases due to the new transportation policy and it causes pollution. Besides the fixed transportation and carbon emission cost (FTCEC), a container dependent carbon emission cost is applied. Some investments for setup cost reduction (SCR), ordering cost reduction (OCR), and quality improvement (QI) are considered. The lead time demand follows a normal distribution. The total cost of the supply chain is optimized and the model is tested numerically. The main intent of this study is to solve the shortage problem which occurs due to unreliability of the manufacturer. The study helps to reduce the unreliability issue of the manufacturer. The objective function is solved by using the classical optimization technique. Numerical results show that the discount for partial backorder enhances the profitability of the manufacturer. The sensitiveness of the parameters are discussed through the sensitivity of analysis and some special cases. Managerial insights provide the applicability of this study among different sectors.


2004 ◽  
Vol 01 (03) ◽  
pp. 307-323 ◽  
Author(s):  
MU-CHEN CHEN ◽  
HSU-HWA CHANG ◽  
SHUEN-CHIEH CHANG ◽  
SHIH-MING CHEN

Nowadays enterprises are facing many challenges such as global competition and thin profits. Consequently, enterprises have changed their focus from cost reduction and quality improvement to quick customer response and innovative services. In recent decades, enterprises have developed advanced industry initiatives to improve efficiency by supply chain management. Effective supply chain management is not achievable by any single enterprise, but instead requires a virtual entity of integrated supply chain partners. They have the insightful commitment of real-time information sharing and collaborative management. Under such a circumstance, an initiative of collaborative management, Collaborative Planning, Forecasting, and Replenishment (CPFR), has recently been developed and implemented in the industry. In this paper, a case study of CPFR implementation in Rexon, Taiwan is conducted to provide a reference to other enterprises. Rexon's primary purpose of implementing CPFR is to strengthen its retail partnership, improve the accuracy of demand forecasts, and reduce inventory cost and other related operational costs.


2019 ◽  
Vol 5 (1) ◽  
pp. 38-49 ◽  
Author(s):  
B. K. Handoyo ◽  
M. R. Mashudi ◽  
H. P. Ipung

Current supply chain methods are having difficulties in resolving problems arising from the lack of trust in supply chains. The root reason lies in two challenges brought to the traditional mechanism: self-interests of supply chain members and information asymmetry in production processes. Blockchain is a promising technology to address these problems. The key objective of this paper is to present qualitative analysis for blockchain in supply chain as the decision-making framework to implement this new technology. The analysis method used Val IT business case framework, validated by the expert judgements. The further study needs to be elaborated by either the existing organization that use blockchain or assessment by the organization that will use blockchain to improve their supply chain management.


Author(s):  
Dick Verbeek

This case study has been developed to facilitate discussion about current supply chain management issues and potential solutions. The scenario presented in this case is very representative of the pressures experienced by supply chain managers. Namely, the need to reduce costs while maintaining quality and customer service. This case presents some unusual challenges and constraints that are unique to the cruise line industry. These constraints can provide an opportunity to explore new supply chain paradigms.


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