Dual Sourcing Strategies

M. Eric Johnson
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M. Eric Johnson: Dartmouth College

Chapter Chapter 5 in Building Supply Chain Excellence in Emerging Economies, 2007, pp 113-133 from Springer

Abstract: Abstract Sourcing strategies that employ operational hedging can reduce the risk of operating in low-cost countries. This article examines the sourcing strategy of toy-maker Mattel. Like the high technology industry, toys suffer from many supply chain ailments including short product life, rapid product turnover, and seasonal demand. Coupled with long supply lines and potential political and economic turmoil in Asia, toymakers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toymakers. Set during the Asian financial crisis, the case describes a facility location decision for Hot Wheels and Matchbox cars. Besides the international location decision, the case illustrates: 1) How toy makers manage demand uncertainty; 2) Mattel’s outsoucing strategy in Asia; 3) How Mattel integrates its marketing and supply chain strategy.

Keywords: Supply Chain; Molten Zinc; Emerge Economy; Supply Chain Strategy; Injection Mold Machine (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-0-387-38429-0_5

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DOI: 10.1007/978-0-387-38429-0_5

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