Evaluating cost-reduction alternatives and low-cost sourcing opportunities for aerospace castings and forgings
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277139553-MIT.pdf
Description
Full printable version
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5.39 MB
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9b99aaf2ca83c503dbe999fa30bc100e
Author(s)
Obermoller, Amber J
Advisor(s)
Thomas Eagar, Charles Fine and Jonathan Byrnes.
Date Issued
2008
Publisher
Massachusetts Institute of Technology
Abstract
As companies continue to outsource large portions of their manufacturing, managing costs in the supply chain is increasingly important in reducing overall costs and remaining competitive. Low-cost sourcing has become an increasingly prevalent way for companies to reduce total costs. This thesis develops a methodology for evaluating cost-reduction alternatives and low-cost sourcing opportunities. This thesis is intended to provide procurement managers with assistance in making informed and well-thought out decisions regarding cost-reduction and low-cost sourcing choices. Six criteria are established to compare cost-reduction alternatives and evaluate the fit of an alternative with the company's supply chain strategy. A framework is developed to aid procurement managers in evaluating low-cost sourcing opportunities. This framework involves the utilization of filters to screen parts, countries, and companies for fit with the supply chain strategy. A model that can provide recommended sourcing locations is developed to evaluate domestic low-cost sourcing options.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2008.
Includes bibliographical references (p. 83-85).
Subjects
Sloan School of Management.
Materials Science and Engineering.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Materials Science and Engineering
Sloan School of Management
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