Title: Strategic deployment of specialised testing and remanufacturing in a global high-tech supply chain
Authors: Jarrod Goentzel, Lou Manzione, Richard Pibernik, Joseph Pruett, Brett Thiessen
Addresses: MIT Center for Transportation and Logistics, Massachusetts Institute of Technology, Cambridge, MA 02139, USA. ' Bell Labs Ireland, Blanchardstown Industrial Park, Blanchardstown, County Dublin 15, Ireland. ' MIT-Zaragoza International Logistics Program, Zaragoza Logistics Center, Avda. Gomez Laguna 25, Zaragoza 50009, Spain. ' MIT-Zaragoza International Logistics Program, Zaragoza Logistics Center, Avda. Gomez Laguna 25, Zaragoza 50009, Spain. ' MIT-Zaragoza International Logistics Program, Zaragoza Logistics Center, Avda. Gomez Laguna 25, Zaragoza 50009, Spain
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.
Keywords: strategic network design; quality management; remanufacturing; high-tech manufacturing; global supply chains; supply chain management; SCM; outsourcing; telecommunications OEMs; strategic deployment; testing; resource allocation; material flow; research and development; R&D investment; cost structures; demand patterns; production yields.
International Journal of Manufacturing Technology and Management, 2007 Vol.11 No.1, pp.28 - 52
Published online: 14 Feb 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article