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Supply Chain Design (Collection) by Jay Jayaraman, Peter Cacioppi, Sara Lewis, Michael Watson, Arthur V. Hill, Stephen B. LeGrand, Mark J. Schniederjans

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22. Novelette: So You Want to Eliminate a Plant in a Foreign Country

Not all production facilities turn a profit for their stakeholders. When they start losing money, they are at risk of being discontinued. Usually, decisions to eliminate a plant are at the executive level in an organization, but who actually eliminates it are the same people who generally created the plant in the first place: the operations management people. Just as they can engineer a plant that does not work, so too can they fix it to work!

The Executive VP whom I work under came to my office to inform me of a decision he had made. “Hi, Bill. As you know, we bought a facility in Korea eight years ago to produce our medium-sized automobile engines that we sell to the car manufacturers, ...

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