Related questions
Concept explainers
A chemical firm is considering how best to supply the world market for sulfuric acid. A
The company ought to support distributed manufacturing. The start-up cost is a pitiful $20 million in an industry that will be worth $20 to $30 billion in ten years. Decentralized businesses benefit from moderate tariffs since each plant may be configured to service a different tariff-blocked market, giving them a competitive edge. There are also many people with medium skill levels. In this situation, a company is not required to centralize based on manpower. The company ought to locate a facility near accessible transportation hubs within each significant market. In this manner, the company may send goods to clients at a low cost and avoid paying Intermarket taxes. The transportation hubs (New Orleans, Chicago, New York, London, and Singapore) typically have a large pool of unemployed people since other businesses build factories there for the same purpose.
Step by stepSolved in 2 steps
- Your company has seen tremendous growth in sales within the U.S. and you now want to expand to the European market. Your logistics provider discussed the benefits of subcontracting your manufacturing to Asia. Question: What are some of the advantages and disadvantages of production outside the U.S.? Hint: The evolution Outsourcing, Nearsourcing and Friendshoringarrow_forwardThe executives of a clothing manufacturer want to outsource some of their manufacturing to more cost-efficient locations in Indonesia. After visiting several possible sites, they choose one and begin to negotiate with local officials. They discover that it will take about six months to get the necessary permits. One of the local politicians approaches the executives over dinner and hints that he can speed up the process for an advisory fee of $5,000. Using a web search tool, locate articles about this topic, and then write responses to the following questions. Be sure to support your arguments and cite your sources. Ethical Dilemma: Is paying the advisory fee a bribe or an acceptable cost of doing business in that area of the world? What should the executives do before agreeing to pay the fee?arrow_forwardConsider the challenges of global manufacturing and supply chain management. Pay attention to page 348 attached. Then: Identify and mention the four production location strategies. Discuss the order in which you understand strategies should be developed and why.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education 
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.