Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
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)?
Chapter 12 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?arrow_forwardDefine the term redeployment? What significance does redeployment have?arrow_forwardWhat would be a good supply chain if you were to manage Disney World?arrow_forward
- Do you think outsourcing play an important role in supply chain management? Why do you think so? Justify your answer with relevant example.arrow_forwardRegarding the design of the Washable Deluxe Painting Kit® supply chain, Crayola must evaluate the strategy of next-shoring in Asia or retainingan existing network that involves the assembly of the kits in the U.S. Compare and contrast these two supply chain designs from perspective of the decision factors and pitfalls for outsourcing discussed min the text.arrow_forward1.What is SCM (Supply Chain Management System)? Explain how SCM works for any business organizationarrow_forward
- How do the four supply chains of Darden equate to those of other companies, such as Dell or an automaker? There are the gaps and how are they dealt with?arrow_forwardDraw two diagrams, one depicting the supply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk2 consider when making the sourcing decision?arrow_forwardList five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work to the back in-house? Why are some organizations beginning to use onshoring?arrow_forward
- Describe outsourcing methods, taking into account the complexities of the supply chain design. Furthermore, what is the appropriateness of outsourcing with regard to decision making and vertical integration, as these principles influence the management of the whole supply chain?arrow_forwardIs outsourcing best practice? Argue FOR AND AGAINSTarrow_forwardDescribe what are the main reasons and arguments for offshoring is the lower total cost?arrow_forward
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