Essay on Global Supply Chain Design: a Literature Review and Critique

10136 Words Dec 2nd, 2012 41 Pages
Transportation Research Part E 41 (2005) 531–550 www.elsevier.com/locate/tre Global supply chain design: A literature review and critique
Mary J. Meixell a a,*

, Vidyaranya B. Gargeya

b,1

School of Management, Enterprise Hall, MSN 5F4, George Mason University, Fairfax, VA 22030-4444, United States b Information Systems and Operations Management Department, 479, Bryan Building, The University of North Carolina at Greensboro, Greensboro, NC 27402, United States

Abstract In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is
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Meixell, V.B. Gargeya / Transportation Research Part E 41 (2005) 531–550

(Taylor, 1997; Dornier et al., 1998). This growth in globalization, and the additional management challenges it brings, has motivated both practitioner and academic interest in global supply chain management. The interest in global operations management among researchers has been documented by Prasad and Babbar (2000), who noted both a long history of attention to global operational issues, as well as an increase in the number of articles published in the leading operations management journals on this subject. Supply chain management is not just a domestic phenomenon—supply chains transcend national boundaries, imposing the challenges of globalization on managers who design supply chains for existing and new product lines. In this paper, we review articles pertaining to global supply chain design and focus on the logistics of the supply chain, i.e., the movement of goods from the point of origin to the point of consumption (Vitasek, 2003). Fig. 1 illustrates alternative production locations for a global supply chain, depicting manufacturing activities for an end-product and for multiple tiers of components. The supply chain is arranged in tiers that represent production stages, which are organized such that the outputs from one tier are the inputs to the next. For example, a factory in an apparel supply chain that produces plastic ships to a factory that uses

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