Supply Chain Disturbances Assessment Model: Insights from High Value Engineering Supply Chain Sourcing Decisions

Fahian Anisul Huq, Kulwant Pawar, Nachiappan Subramanian, Ilma Nur Chowdhury

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Abstract

Even though total cost reduction is the primary reason for outsourcing, historically firms have not taken into account the possible uncertainty and risk related costs (supply chain disturbance factors) present in their global supply chains. This paper investigates through AHP how an European based high value engineering firm rates supply chain disturbances while using two alternate supply chain design strategies - insource/near-shore, and outsource/offshore. Interestingly, our findings show that quality defects are weighed higher when the former strategy is adopted. Results from our sensitivity analysis show that a decrease in firm related disturbances increase supply network related disturbances.
Original languageEnglish
Title of host publicationhost publication
PublisherEurOMA
Publication statusPublished - Jul 2015
Event22nd European Operations Management Association (EurOMA) Conference - Neuchatel, Switzerland
Duration: 1 Jan 1824 → …

Conference

Conference22nd European Operations Management Association (EurOMA) Conference
CityNeuchatel, Switzerland
Period1/01/24 → …

Keywords

  • Supply Chain Configurations
  • High Value Engineering Industry
  • Disturbance Factors

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