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

Abraham Zhang, Hao Luo and George Q. Huang

International Journal of Production Economics, 2013, vol. 146, issue 1, 48-58

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.

Keywords: Supply chain management; Supply chain strategy; Dispersed manufacturing; Manufacturing network; China; Integer programming (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:146:y:2013:i:1:p:48-58

DOI: 10.1016/j.ijpe.2012.12.008

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