(Ph.D. University of Minnesota) is a Professor of Decision Sciences and Qwest Endowed Chair in Global Communications and Technology Management in the Opus College of Business, University of St. Thomas. Major research interests include optimization concepts applied to design and operational management of production and service systems where issues relating to various aspects of global supply chain management, international operations, technology management, product and process innovation, and capital investment justification decisions are also considered.
A PRACTITIONER'S DECISION MODEL FOR THE TOTAL COST OF OUTSOURCING AND APPLICATION TO CHINA, MEXICO, AND THE UNITED STATES
Version of Record online: 10 MAY 2011
2008 Council of Supply Chain Management Professionals
Journal of Business Logistics
Volume 29, Issue 2, pages 107–139, Autumn 2008
How to Cite
Kumar, S. and Kopitzke, K. K. (2008), A PRACTITIONER'S DECISION MODEL FOR THE TOTAL COST OF OUTSOURCING AND APPLICATION TO CHINA, MEXICO, AND THE UNITED STATES. JOURNAL OF BUSINESS LOGISTICS, 29: 107–139. doi: 10.1002/j.2158-1592.2008.tb00089.x
- Issue online: 10 MAY 2011
- Version of Record online: 10 MAY 2011
- Statistical analysis
Outsourcing of manufacturing to Mexico and China includes costs that are not always considered and benefits that are not always correctly quantified. An analytical model for determining outsourcing costs was developed and results from that model are presented. Using that model, the sensitivity of outsourcing costs to several variables was modeled and analyzed. Guidance is provided regarding factors to consider in an outsourcing decision.