Abstract
Dispersed manufacturing achieves the greatest cumulative competitive advantage by dissecting a supply chain and assigning each process to an optimal location. Dispersed manufacturing has been an integral part of global manufacturing in China. This paper presents a bi-objective model for the supply chain design of dispersed manufacturing in the context of rising business operating costs in coastal China. It considers essential trade-offs between supply chain cost and lead time to determine optimal facility locations of manufacturing steps. The model is applied to a representative case to illustrate the cost benefits of dispersed manufacturing as opposed to performing all manufacturing steps of a product at a single facility location. It provides explanations in several factors that have benefited manufacturing growth in China, and offers insights in the emerging global manufacturing trends.
| Original language | English |
|---|---|
| Pages (from-to) | 48-58 |
| Number of pages | 11 |
| Journal | International Journal of Production Economics |
| Volume | 146 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Nov 2013 |
| Externally published | Yes |
Keywords
- China
- Dispersed manufacturing
- Integer programming
- Manufacturing network
- Supply chain management
- Supply chain strategy
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering