Utilising the potential of combining local and global supply chains
Artikel i vetenskaplig tidskrift, 2010

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.

base demand

simulation study

outsourcing

surge demand

low-cost sourcing

logistics

Författare

Anna M K Fredriksson

Chalmers, Teknikens ekonomi och organisation, Logistik och transport

Patrik Jonsson

Chalmers, Teknikens ekonomi och organisation, Logistik och transport

Per Medbo

Chalmers, Teknikens ekonomi och organisation, Logistik och transport

International Journal of Logistics Research and Applications

1367-5567 (ISSN) 1469-848X (eISSN)

Vol. 13 4 313-326

Ämneskategorier

Produktionsteknik, arbetsvetenskap och ergonomi

SAMHÄLLSVETENSKAP

Ekonomi och näringsliv

Styrkeområden

Transport

Produktion

DOI

10.1080/13675561003761978