ABSTRACT
Decisions regarding offshoring and reshoring of manufacturing facilities and processes are of strategic importance for companies. These decisions often require the consideration of multiple financial, quantitative and qualitative factors. Integrating these often disparate factors can be extremely difficult for managers. This article presents a methodology, based on expert and practitioner input and literature, which aids in this process. The methodology incorporates concepts from activity-based costing, multi-attribute decision making and utility theory. An illustrative example using factors derived from literature and practice is presented to demonstrate the methodology and to discuss the issues which must be considered when making offshoring/reshoring decisions. The results of a series of interviews with supply chain professionals to establish the validity of the approach are discussed.
Disclosure statement
No potential conflict of interest was reported by the authors.
Additional information
Notes on contributors
Adrien Presley
Adrien Presley is a Management Professor in the School of Business at Truman State University, teaching courses in the areas of supply chain, operations, and information systems management. His articles have appeared in International Journal of Production Research, IEEE Transactions on Engineering Management, International Journal of Logistics Systems and Management, International Journal of Production Economics, and Journal of Teaching in International Business, among others. His areas of research include supply chain management, sustainability, decision making models and pedagogy.
Laura Meade
Laura M. Meade is Professor of Supply Chain Practice and Director of International Programs in the Neeley School of Business at TCU. She has published several articles in the area of enterprise modelling, supply chain management, reverse logistics and sustainability. Her research has been published in Decision Sciences, Greener Management Inter-national, IEEE Transactions on Engineering Management, Engineering Management Journal, Supply Chain Management: An International Journal, International Journal of Production Research, Logistics and Transportation Review Journal, and Omega International Journal of Management Science. Laura teaches supply chain management courses at the undergraduate and the graduate level and has led several student groups thru company sponsored projects as well as study abroad trips.
Joseph Sarkis
Joseph Sarkis is a Professor of Management, Head of Department of Management within Worcester Polytechnic Institute’s (WPI) Foisie School of Business. He has published over 200 papers in peer reviewed journals on topics ranging from manufacturing and production technology to service, non-profit and governmental settings, with over 180 papers in SSI/SSCI indexed journals. He has also published over 175 additional papers as chapters in books and in conference proceedings. He has published 8 books. He is editor of Management Research Review, an Emerald Publishing journal. He is departmental editor of the Social Issues and Sustainability in Engineering Management Department for IEEE Transactions on Engineering Management. He is a book series editor for the Greening of Industry Networks published by Springer Publishers. It has been noted that he is the most productive researcher in the world on the topic of supply chain management for the period 1995-2015.