Degree Type

Thesis

Date of Award

2008

Degree Name

Master of Science

Department

Theses & dissertations (College of Business)

First Advisor

Danny J. Johnson

Second Advisor

Jennifer J. Blackhurst

Third Advisor

Michael R. Crum

Abstract

Global sourcing represents one of the major focuses in many industries as a means to lower costs. While global sourcing generally reduces per unit costs, the impact of global sourcing on total costs throughout the supply chain often remains unrecognized. Increased lead-time due to global sourcing represents one of the commonly unrecognized costs. Hence, the simulation model developed in this study demonstrates the impact of lead-time length and variation as well as variation in demand and safety stocks on the ending inventory and backorder levels in a two product MRP system. The results show that backorders grow at a diminishing rate as a function of lead-time while ending inventories show the opposite trend. In addition, the study shows that firms need to more carefully consider the impact of lead-time. The study demonstrates that lead-time, not just lead-time variability, represents a key cost factor.

DOI

https://doi.org/10.31274/rtd-180813-16590

Publisher

Digital Repository @ Iowa State University, http://lib.dr.iastate.edu/

Copyright Owner

James Duane Abbey

Language

en

Proquest ID

AAI1453896

OCLC Number

256489209

ISBN

9780549595496

File Format

application/pdf

File Size

108 pages

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