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Global Production, Outsourcing and Logistics (Strategy, Production,…
Global Production, Outsourcing and Logistics
Strategy, Production, Logistics
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Logistic
The procurement and physical transmission of material through the supply chain, from suppliers to customers
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Where to produce
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Technological Factors
Fixed costs
In some cases the fixed costs of setting up a production plant are so high that a firm must serve the world market from a single location or from a very few locations
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Mass Customization
The production of a variety of end products at a unit cost that could once be achieved only through mass production of a standardized output
Flexible Machine Cells
Flexible manufacturing technology in which a grouping of various machine types, a common materials handler, and a centralized cell controller produce a family of products
Product factors
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The other product feature that can influence location decision is whether the product serves universal needs, needs that are the same all over the world
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