The Mexico-China Sourcing Game: Teaching Global Dual Sourcing

The Mexico-China Sourcing Game: Teaching Global Dual Sourcing

W describe a three-hour class on global dual sourcing built around a game that demonstrates the challenges in making operational decisions, and transfers recent academic insights to the classroom. Student teams manage a firm with access to a responsive but expensive supply source (Mexico) and a cheap but remote source (China). Each team must determine a sourcing strategy to satisfy random deman...

Global Dual Sourcing and Order Smoothing

Motivated by the recent trend of offshoring manufacturing facilities to seek lower production cost, while keeping some costly local facilities to better respond to changes in market demand, this paper studies a dual sourcing policy and characterizes the average sourcing allocation. We consider the total landed cost from origin (combining a cheap but slow source and a fast but expensive source) ...

Sourcing from China

Single sourcing versus dual sourcing under conditions of learning

This paper considers a buyer who has to decide whether to select a single or two sources of supply for a homogeneous product. The production processes of the suppliers are subject to learning effects, which reduce the production costs and increase the production capacities of the suppliers. This, in turn, enables the suppliers to reduce the sales price, which results in lower acquisition costs ...

Kostenreduzierung durch Global Sourcing

Nachdem viele Unternehmen der Automobilindustrie umfangreiche Restrukturierungsund Kostensenkungsprogramme durchgeführt haben, stellt das Global Sourcing, also die verstärkte Globalisierung von Beschaffungsaktivitäten den nächsten großen Stellhebel zur Kostenreduzierung dar. Da die Fertigungstiefe der OEM ́s relativ gering ist, sind die Beschaffungskosten einer der größten Kostenfaktoren. Die me...