sir one fo the methods to increase throughput as mentioned in my study text is- "to reduce material costs per unit (e.g. by changing materials or switching suppliers), to increase the throughput per unit"
sir but i don't understand how changing a supplier will lead to reduction in material cost?? in fact the longer the purchaser has had a relationship with a particular supplier the more the ability of the buyer to negotiate discounts.
what is it that am failing to understand, sir?
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5y ago#1It is not saying that switching suppliers will automatically mean lower costs. It is simply that it might be possible to find a supplier who sells the same material at a lower price.
Although as you write it might be that the existing supplier gives discounts and is therefore the cheapest supplier, but that is not necessarily the case - there may still be other suppliers who charge lower prices.
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