Application of PCA in Controlling and Reducing Enterprise Logistic Cost

Logistic cost is accompanied by logistic activities. A logistic cost is an important indicator to measure the production efficiency of an enterprise. With strengthening the logistic management awareness, how to effectively reduce logistic cost has become a core mission. Using primary components analysis (PCA) and its advantages, influential factors on logistic cost reduction in enterprise material conveying is analyzed. On the basis of PCA model and scores by the experts, the authors computed some results that can reflect logistic cost reduction. Through case study, it can be seen that some factors play very important role and all the reasons should be taken into account because logistic cost reduction depends on the interaction of all the factors. Through analysis and deduction, it is concluded that, under the premise of minimizing the information loss of data, the application of PCA in the investigation on logistic cost reduction in enterprise material conveying approves to be practicable.