Evaluating cost-reduction alternatives and low-cost sourcing opportunities for aerospace castings and forgings

As companies continue to outsource large portions of their manufacturing, managing costs in the supply chain is increasingly important in reducing overall costs and remaining competitive. Low-cost sourcing has become an increasingly prevalent way for companies to reduce total costs. This thesis develops a methodology for evaluating cost-reduction alternatives and low-cost sourcing opportunities. This thesis is intended to provide procurement managers with assistance in making informed and well-thought out decisions regarding cost-reduction and low-cost sourcing choices. Six criteria are established to compare cost-reduction alternatives and evaluate the fit of an alternative with the company's supply chain strategy. A framework is developed to aid procurement managers in evaluating low-cost sourcing opportunities. This framework involves the utilization of filters to screen parts, countries, and companies for fit with the supply chain strategy. A model that can provide recommended sourcing locations is developed to evaluate domestic low-cost sourcing options.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2008

Author dc:creator

• Obermoller, Amber J

Advisor dc:contributor.advisor

• Thomas Eagar, Charles Fine and Jonathan Byrnes.

• Sloan School of Management.
• Materials Science and Engineering.
• Leaders for Manufacturing Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/44381

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/44381