MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 12, Problem 3DQ
Summary Introduction

Interpretation: Pros and cons of ‘off-shoring’ and of ‘not off-shoring’ with respect to two large multinationals.

Concept Introduction: Off-shoring, outsourcing, making in house are some of the options/strategies available to companies for management of their diverse and large operations. Each has its own plus and minus points specific to the company’s context. Two similar companies may have diverse strategy while two different companies may have similar strategy depending upon each situation and context.

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Canon, a Japanese manufacturer of photographic equipment, decided against offshoring and kept its manufacturing and new product development processes in Japan, which has relatively high labor costs. In contrast, GM, headquartered in the United States, has a joint venture with Shanghai Auto Industry Corporation (SAIC) to produce cars in China. Givenour discussion of outsourcing, offshoring, next-shoring, and supply chain design, discuss how these two seemingly diverse decisions could be supportive of each company’s operations strategy.
Explain how Amazon can use information (as a supply chain performance driver) to decide the location of its facilities.   What services a restaurant can outsource?
Is there a logical collection of guidelines for determining whether to outsource (or not)?
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