Last Time Buy Procurement Strategy For Electronic Service Parts

In recent years, with the rapid development of the global economy andenhancement of human’s needs all the time, upgrading of spare parts is increasing atan incredible rate, which greatly shortens the product’s life cycle as well as theproduct’s purchase cycle. As a result, it leads to mismatch between product’s servicetime and production time for the service parts, which brings troubles to manufacturer’safter-sales service and CSL (Customer Service Level).Based on the current practice in electronic manufacturers, called LTB (Last TimeBuy), this thesis mainly studies how to alleviate the confliction between long-termafter-sales service demand and short-term production for the service part fromsuppliers. This thesis develops a LTB strategy management model with customerservice level and cost spending parameters in different stages after LTB procurementpoint to help the manufacturer procurement department make reasonable LTB decisionat the time of final order for the service parts.At the same time, considering the LTB budget control in the current situation,based on the management strategic model, this thesis further analyzes total costchanges and customer service level changes with different LTB budget settings. Thissensitivity analysis will also be helpful to the finance department when estimating costand making reasonable decisions for LTB budget.