EFFECT OF COST INCREMENT DISTRIBUTION PATTERNS ON THE PERFORMANCE OF JIT SUPPLY CHAIN
ABSTRACT: Cost is an important
consideration in supply chain (SC) optimisation. This is due to emphasis placed on cost
reduction in order to optimise profit.
Some researchers use cost as one of their performance measures and
others propose ways of accurately calculating cost. As product moves across SC, the product cost
also increases. This paper studied the
effect of cost increment distribution patterns on the performance of a JIT Supply
Chain. In particular, it is necessary to
know if inventory allocation across SC needs to be modified to accommodate
different cost increment distribution
patterns. It was found that funnel is still the best card distribution pattern
for JIT-SC regardless the cost increment distribution patterns used.
Author: Ayu Bidiawati J.R,
Noor Ajian Mohd Lair
Journal Code: jptindustrigg080005
