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Operations Management: Sustainability and Supply Chain Management, Twelfth Edition
book

Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

by Jay Heizer, Barry Render, Chuck Munson
February 2016
Intermediate to advanced content levelIntermediate to advanced
480 pages
219h 58m
English
Pearson
Content preview from Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Sourcing Issues: Make-or-Buy and Outsourcing

As suggested in Table 11.2, a firm needs to determine strategically how to design the supply chain. However, prior to embarking on supply chain design, operations managers must first consider the “make-or-buy” and outsourcing decisions.

Table 11.2 How Corporate Strategy Impacts Supply Chain Decisions*

* See related table and discussion in Marshall L. Fisher, “What Is the Right Supply Chain for Your Product?” Harvard Business Review (March–April 1997): 105.

Low-Cost Strategy Response Strategy Differentiation Strategy
Primary supplier selection criteria
  • Cost

  • Capacity

  • Speed

  • Flexibility

  • Product development skills

  • Willing to share information

  • Jointly and rapidly develop products

Supply chain inventory ...
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Publisher Resources

ISBN: 9780134422404