In recent years, companies have experienced several waves of internationalization [19]. As a result, production networks have been developed into global and complex entities [13], which, in turn, are suboptimal and fragmented [4]. “The challenge companies are facing now is to optimize these production networks within the existing location structures by redesigning the value-added activities” [19]. The optimization of production network structures heightens the risk of wrong decisions. This is reflected in the massive failure of relocation schemes in general, but particularly of internal relocations of value-added processes. In 2012, one-fourth of all offshoring projects in the manufacturing sector resulted in reshoring projects [23]. The causes of such a high number of wrong decisions go back to a merely cost-based decision behavior. The reasons for reshoring, listed in figure 1, show what is currently going wrong in planning [10]. It highlights that those qualitative criteria that cannot be evaluated in monetary terms, such as flexibility or quality, are presently not or not appropriately considered in the decision-making process when structuring production networks [22].
Optimization of global production network structures
Proceedings
2015-05-06
11 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
Optimization of global production network structures
Kraftfahrwesen | 2015
|Global optimization methods for the discrete network design problem
Online Contents | 2013
|Global optimization methods for the discrete network design problem
Elsevier | 2013
|A global optimization method for continuous network design problems
Online Contents | 2012
|A global optimization method for continuous network design problems
Elsevier | 2012
|