supply based reduction

the reduction in the number of suppliers used to provide a firm with its input requirements. Some firms use a single supply source to provide all their requirements of a particular input. Relying on a single supplier may allow a firm to reduce its costs (through the discounts given on bulk-buying) and facilitate the operation of a JUST-IN-TIME (JIT) production system. On the other hand, relying on a single source of supply may expose the firm to a greater risk of supply disruptions. See SOURCING, LEAN PRODUCTION.

单词	supply based reduction
释义	supply based reduction supply based reduction the reduction in the number of suppliers used to provide a firm with its input requirements. Some firms use a single supply source to provide all their requirements of a particular input. Relying on a single supplier may allow a firm to reduce its costs (through the discounts given on bulk-buying) and facilitate the operation of a JUST-IN-TIME (JIT) production system. On the other hand, relying on a single source of supply may expose the firm to a greater risk of supply disruptions. See SOURCING, LEAN PRODUCTION.
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