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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?
It 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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