The following article highlights the importance of making global location decisions based on the total cost of
Question:
The following article highlights the importance of making global location decisions based on the total cost of ownership. In other words, companies need to make global location choices by evaluating all the factors that impact the total cost of doing business in a foreign location. Global location decisions should not be based on just availability of cheap labor or raw materials, but they should include factors such as labor productivity, distance, and protection of intellectual property rights.
Search for the article titled “Time to Head Home for Some Manufacturers” in Businessweek and answer the discussion questions.
1. Why is the information in this article important to operations managers?
2. What are the business reasons for relocating factories back in the United States?
3. How will relocating manufacturing facilities in the United States affect how operations and supply chains are managed?
4. What is the near-term future of manufacturing employment in the United States?
Step by Step Answer:
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto