Strategic deployment of specialised testing and remanufacturing in a global high-tech supply chain
by Jarrod Goentzel, Lou Manzione, Richard Pibernik, Joseph Pruett, Brett Thiessen
International Journal of Manufacturing Technology and Management (IJMTM), Vol. 11, No. 1, 2007

Abstract: As companies increasingly outsource production they must maintain high-quality standards by managing specific manufacturing and testing processes performed by their partners. In this paper, we investigate the case of a major telecommunications Original Equipment Manufacturer (OEM) that is evaluating strategic deployment of expensive testing equipment, allocation of testing and remanufacturing work and the R&D investment to design a self-testable product. We employ a multiperiod optimisation model to consider both strategic resource allocation and material flow decisions. Conclusions are drawn from the analysis of several scenarios that are based on realistic cost structures, demand patterns and production yields for the OEM and its partners.

Online publication date: Wed, 14-Feb-2007

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