Greenwood, Allen G.
Bullington, Stanley F.
Date of Degree
Graduate Thesis - Open Access
Master of Science
James Worth Bagley College of Engineering
Department of Industrial and Systems Engineering
As international commerce continues to emerge due to telecommunication and transportation breakthroughs, the eagerness of companies to send particular business functions offshore increases. Offshoring is the removal of a company function (particularly, manufacturing) from a domestic location to a remote destination. Since many developing economies contain low labor wages, companies in the United States and Europe are able to leverage cost savings by paying low compensation to foreign production employees. The low cost concept, though, does not always offer significant financial reward. For companies with particular product types, business models, or limited experience, offshoring proves to be an expensive mistake that is difficult to reverse. Even so, some U.S. enterprises are reshoring their production function to combat the issues faced in the foreign manufacturing sector. This study aims to investigate the problems of offshoring and proposes a “systems-view” decision framework for global sourcing.
Purnell, Raymond George, "Understanding Managerial Decisions about Global Sourcing: Offshoring and Reshoring of Production" (2012). Theses and Dissertations MSU. 4828.