Abstract
The main objective of this paper is to establish the hypothesis model for supply chain logistics cost for automobile products. Literature survey indicates that logistics costs have been studied in automobile sector at various stages of the product development; however, there has been little research conducted on examining logistics costs in the introduction stage. Hence, this paper attempts to establish the logistic cost model of an automobile product which is in launch phase and validates the model using a case study. Structural equation model is used to study the research model and evaluate the model fitness. More than 500 components logistics data are collected and AMOS-SPSS is used to analyse the structural equation model. The evidence indicates that there is a positive relationship between logistics cost and the hypothesis model factors. The study provides an opportunity to reduce the logistics cost by focusing the constructs of logistics cost model.
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