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Lecture International business (9e): Chapter 17 - Charles W.L. Hill - Trường Đại học Công nghiệp Thực phẩm Tp. Hồ Chí Minh

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responsive and production and logistics can respond quickly to shifts in customer. demand[r]

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9e 

By Charles W.L Hill

McGraw­Hill/Irwin         Copyright © 2013 by The McGraw­Hill Companies, Inc. All rights reserved.

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Global Production, Outsourcing, and

Logistics

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What Are The Main  Production Issues For Firms?

 International firms must answer five interrelated

questions

1 Where should production activities be located?

2 What should be the long-term strategic role of foreign

production sites?

3 Should the firm own foreign production activities or

outsource those activities to independent vendors?

4 How should a globally dispersed supply chain be

managed, and what is the role of Internet-based

information technology in the management of global

logistics?

5 Should the firm manage global logistics itself, or should

it outsource the management to enterprises that

specialize in this activity?

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And Logistics Related?

 Production - activities involved in creating a

product

 Logistics - procurement and physical

transmission of material through the supply

chain, from suppliers to customers

 Questions: How can production and logistics

1 Lower the costs of value creation?

2 Add value by better serving customer needs?

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How Can Quality 

Be Improved?

management (TQM)

aims to reduce defects, boost productivity,

eliminate waste, and cut costs throughout the company

in the EU, firms must meet ISO 9000

standards before gaining access to the EU

marketplace

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Be Improved?

The Relationship Between Quality and Costs

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Where Should  Production Be Located?

 production and logistics can be locally

responsive and production and logistics can respond quickly to shifts in customer

demand

1 Country factors

2 Technological factors

3 Product factors

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