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Utilising the potential of combining local and global supply chains

Anna Fredriksson (Institutionen för teknikens ekonomi och organisation, Logistik och transport) ; Patrik Jonsson (Institutionen för teknikens ekonomi och organisation, Logistik och transport) ; Per Medbo (Institutionen för teknikens ekonomi och organisation, Logistik och transport)
International Journal of Logistics: Research and applications (1367-5567). Vol. 13 (2010), 4, p. 313-326.
[Artikel, refereegranskad vetenskaplig]

Outsourcing of manufacturing leaves two options for the structuring of the supply network: either complete outsourcing of an item or process, or combining external sourcing and in-house manufacturing. The objective of this paper is to explain the effect on performance of various strategies of combining in-house manufacturing and outsourced manufacturing. The analysis is based on a case study of a European manufacturer (EM) that has outsourced part of its casting processes to Chinese suppliers. The strategies were tested by means of a simulation study and compared in terms of their effects on inventory performance. The study showed at significance level p < 0.01 that inventory levels in China decreased 23% and inventory levels in Europe decreased 6% with a so-called base-surge strategy, sourcing predictable and stable demand in China and uncertain demand in-house in Europe.

Nyckelord: outsourcing; logistics; low-cost sourcing; simulation study; base demand; surge demand



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Denna post skapades 2010-08-05. Senast ändrad 2015-02-11.
CPL Pubid: 124145

 

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Institutioner (Chalmers)

Institutionen för teknikens ekonomi och organisation, Logistik och transport (2005-2016)

Ämnesområden

Produktion
Transport
Industriell teknik och ekonomi
SAMHÄLLSVETENSKAP
Ekonomi och näringsliv

Chalmers infrastruktur

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Materials Supply and Production Outsourcing