Evaluating cost-reduction alternatives and low-cost sourcing opportunities for aerospace castings and forgings
Author(s)Obermoller, Amber J
Leaders for Manufacturing Program.
Thomas Eagar, Charles Fine and Jonathan Byrnes.
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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.
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).
DepartmentLeaders for Manufacturing Program at MIT; Massachusetts Institute of Technology. Department of Materials Science and Engineering; Sloan School of Management
Massachusetts Institute of Technology
Sloan School of Management., Materials Science and Engineering., Leaders for Manufacturing Program.