Supplier management for manufacturer – a case study of flexible PCB

The purpose of this study is to provide a guideline for manufacturer with multiple products on supplier’s selection. The proposed approach has been constructed based on the total cost, given that each supplier possesses different unit prices, purchasing lead time, and variability. A case study of a Taiwanese company manufacturing flexible printed circuit boards (PCBs) is used to illustrate the proposed model, from which the following can be concluded: supplier selection does affect expected raw material cost, expected relevant inventory cost, setup cost, expected capacity cost, transportation cost, and eventually the total cost. Instead of unit price, total cost should be the criterion for supplier selection. In addition, there exists a relationship of trade-off between expected capacity cost and transportation cost.

[1]  S. H. Ghodsypour,et al.  The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint , 2001 .

[2]  Robert E. Spekman,et al.  Towards more effective sourcing and supplier management , 1999 .

[3]  Stephen M. Gilbert,et al.  Supply chain benefits from advanced customer commitments , 1999 .

[4]  Maqbool Dada,et al.  Sourcing decisions with capacity reservation contracts , 2001, Eur. J. Oper. Res..

[5]  Madeleine E. Pullman,et al.  AN ANALYSIS OF THE SUPPLIER SELECTION PROCESS , 1998 .

[6]  Mika Lahti,et al.  Efficient purchasing in make-to-order supply chains , 1999 .

[7]  Sun Hur,et al.  The effect of different arrival rates on the N-policy of M/G/1 with server setup , 1999 .

[8]  Kenth Lumsden,et al.  The influence of lead-time reductions on decisions and rules in the production planning process , 1995 .

[9]  Jack C. Hayya,et al.  Dynamic lot sizing with setup reduction , 1993 .

[10]  Shunji Osaki,et al.  Optimal policies for a controlled queueing system with removable server under a random vacation circumstance , 2000 .

[11]  R. Ballou.  Business Logistics Management , 1991 .

[12]  Darryl D. Wilson,et al.  Supply management orientation and supplier/buyer performance , 2000 .

[13]  Benita M. Beamon,et al.  A multi-objective approach to simultaneous strategic and operational planning in supply chain design , 2000 .

[14]  Venkat Subramaniam.  Efficient Sourcing and Debt Financing in Imperfect Product Markets , 1998 .

[15]  Christos Koulamas.  Simultaneous determination of the cutting speed and lot size values in machining systems , 1995 .

[16]  Chung-lun Li,et al.  Flexible and Risk-Sharing Supply Contracts Under Price Uncertainty , 1999 .

[17]  Nelio Domingues Pizzolato,et al.  Production management practice in a developing country: a case study , 1999 .

[18]  Amy Z. Zeng,et al.  ESTIMATING THE EFFECTS OF CARRIER TRANSIT-TIME PERFORMANCE ON LOGISTICS COST AND SERVICE , 1998 .