Study On The "Trade-Off" Issues In Supply Chain Cost Management

With the rapid development of economic globalization and information technology in today world, competition is not consisting only between enterprises, but more between supply chains. Therefore, Logistics cost management, which is on the basis of supply chain management, is paid more and more attention by entrepreneur. As a result, Logistics must be hold from the view of supply chain, that is to say, Enterprises should pay more attention to supply chain logistics and its cost. So the"trade-off"issues that exist in traditional logistics costs should be further study in Supply Chain Logistics.Just on the basis of supply chain, this paper extends the concept of logistics cost into supply chain cost, introduces the trade off phenomena in supply chain cost management. At the same time, this paper sets up a relevant supply chain model firstly, and resolves the model combining with stimulant data of wholesaling system which including wholesaler,producers,customers and warehouses and so on,and then elicits the optimal scheme that can resolve the"trade-off"issues in supply chain cost management. Lastly this paper brings forward some suggestions on the supply chain cost management in enterprises.