33:799:301 Lecture Notes - Lecture 16: North American Free Trade Agreement, Mercosur, Trans-Pacific Partnership

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: James King

Document Summary

Chapter 10 - global logistics and international trade. Facility location is part of the firm"s business and supply chain strategy but must also consider legal and political environments. Location still matters - industry clusters show that innovation and competition are geographically concentrated. Offshore factory - a factory set up for manufacturing in a country where production is less expensive for eventual shipment to eh manufacturer"s home country. Produces products at low cost with minimal technical and managerial resources. Produces for export to key selling markets. Local management executes and supervises not in making management decisions. Source factory - factory set up for manufacturing where production is less expensive, similar to an off shore factory but with higher skilled labor and local production management. Factory is responsible for end to end production planning of certain products including supplier selection. Often supply worldwide demand for the company of certain existing products.