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A bi-objective model for supply chain design of dispersed manufacturing in China

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  • Zhang, Abraham
  • Luo, Hao
  • Huang, George Q.

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.

Suggested Citation

  • Zhang, Abraham & Luo, Hao & Huang, George Q., 2013. "A bi-objective model for supply chain design of dispersed manufacturing in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 48-58.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:1:p:48-58
    DOI: 10.1016/j.ijpe.2012.12.008
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    2. Mahdavi, Mojtaba & Olsen, Tava Lennon, 2017. "Designing Effective Supply Chains in Strategic Alignment with Demand Characteristics and Market Requirements," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 10(2), pages 89-208, June.
    3. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    4. Jahani, Hamed & Abbasi, Babak & Alavifard, Farzad & Talluri, Srinivas, 2018. "Supply chain network redesign with demand and price uncertainty," International Journal of Production Economics, Elsevier, vol. 205(C), pages 287-312.
    5. Behzadi, Golnar & O'Sullivan, Michael Justin & Olsen, Tava Lennon & Scrimgeour, Frank & Zhang, Abraham, 2017. "Robust and resilient strategies for managing supply disruptions in an agribusiness supply chain," International Journal of Production Economics, Elsevier, vol. 191(C), pages 207-220.
    6. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.

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