Theses and Dissertations

Issuing Body

Mississippi State University

Advisor

Greenwood, Allen G.

Committee Member

Walden, Clay

Committee Member

Bullington, Stanley F.

Date of Degree

5-12-2012

Document Type

Graduate Thesis - Open Access

Major

Industrial Engineering

Degree Name

Master of Science

College

James Worth Bagley College of Engineering

Department

Department of Industrial and Systems Engineering

Abstract

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.

URI

https://hdl.handle.net/11668/17958

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