Managing Global Sourcing: Inventory Performance

Jain, Nitish; Girotra, Karan; Netessine, Serguei

doi:10.1287/mnsc.2013.1816

Cited by 110 publications

(102 citation statements)

References 40 publications

Supporting

Mentioning

101

Contrasting

Order By: Relevance

“…In other words, overseas (vs. domestic) production increases inventory levels. Similarly, Jain et al. (2013) using firm level data found that outsourcing from global sources results in an increase in inventory investment.…”

Section: Theory and Hypothesesmentioning

confidence: 96%

Emerging market presence, inventory, and product recall linkages

Steven

Agudelo

2016

J of Ops Management

View full text Add to dashboard Cite

This study investigates simultaneous linkages between outsourcing, in‐house offshoring, sales to emerging markets, inventory and product recalls. The study finds a positive and significant association between outsourcing to emerging markets and recalls and that sales penetration into emerging markets reduces recalls; however, it finds no direct relationship between in‐house offshoring and recalls. Interestingly, in‐house offshoring to emerging markets appears to mitigate the positive relationship between outsourcing to these markets and recalls; this suggests that transactional complexities of outsourcing to emerging markets are mitigated by a physical presence in the market. This important finding suggests that by keeping some operations in‐house, firms may reduce the negative effect of outsourcing on product quality and safety while reaping low‐cost benefits of sourcing from these emerging markets. Additionally, the results indicate that institutional immaturities within recipient countries (associated with outsourcing) are primary contributors to inefficiencies affecting quality performance. On the inventory side, sourcing from emerging markets negatively affects inventory performance. Although inventory performance typically does not appear to be related to recalls, finished goods inventory is positively associated with quality failures.

show abstract

Section: Theory and Hypothesesmentioning

confidence: 96%

Emerging market presence, inventory, and product recall linkages

Steven

Agudelo

2016

J of Ops Management

View full text Add to dashboard Cite

show abstract

“…Other papers on inventory management employ single equation models, including those by Ton and Raman (2010), Randall et al (2006), Rumyantsev and Netessine (2007), and Jain et al (2013). Industry-specific papers include those by Olivares and Cachon (2009) and Cachon and Olivares (2010), which identify the key drivers that explain the variation in the finished goods inventory within the automotive distribution system.…”

Section: Supply Chain Management (Onlinementioning

confidence: 99%

OM Forum—Causal Inference Models in Operations Management

Lim

Reza

et al. 2017

M&SOM

View full text Add to dashboard Cite

Abstract. Operations management (OM) researchers have traditionally focused on developing normative mathematical models that prescribe what managers and firms should do. Recently, there has been increased interest in understanding what managers and firms actually do and the factors that drive these decisions. To advance this understanding, empirical investigation using causal inference models is critical. However, in many contexts, the ability to obtain causal inferences is fraught with the challenges of endogeneity and selection bias. This paper describes five empirical tools that have been widely used in economics to address these challenges and how they can be adopted by OM researchers. We also present an example that illustrates how the various attributes of big data-variety, velocity, and volume-can be useful in addressing the endogeneity bias.

show abstract

“…Using variational inequality theory, the authors formulate the governing equilibrium conditions of the competing manufacturers, and a simulation study investigates the quantitative impact of demand and cost uncertainty. Recent empirical work by Jain et al (2014) studies the impact of global sourcing and supplier diversification on inventory investment.…”

Section: Related Literaturementioning

confidence: 99%

Global Dual Sourcing and Order Smoothing: The Impact of Capacity and Lead Times

Boute

Mieghem

2015

Management Science

View full text Add to dashboard Cite

A fter decades of offshoring production across the world, companies are rethinking their global networks.Local sourcing is receiving more attention, but it remains challenging to balance the offshore sourcing cost advantage against the increased inventories, because of its longer lead time, and against the cost and (volume) flexibility of each source's capacity. To guide strategic allocation in this global network decision, this paper establishes reasonably simple prescriptions that capture the key drivers. We adopt a conventional discrete-time inventory model with a linear control rule that smoothes orders and allows an exact and analytically tractable analysis of single-and dual-sourcing policies under normal demand. Distinguishing features of our model are that it captures each source's lead time, capacity cost, and flexibility to work overtime. We use Lagrange's inversion theorem to provide exact and simple square-root bound formulae for the strategic sourcing allocations and the value of dual sourcing. The formulae provide structural insight on the impact of financial, operational, and demand parameters, and a starting point for quantitative decision making. We investigate the robustness of our results by comparing the smoothing policy with existing single-and dual-sourcing models in a simulation study that relaxes model assumptions.

show abstract

Managing Global Sourcing: Inventory Performance

Cited by 110 publications

References 40 publications

Emerging market presence, inventory, and product recall linkages

Emerging market presence, inventory, and product recall linkages

OM Forum—Causal Inference Models in Operations Management

Global Dual Sourcing and Order Smoothing: The Impact of Capacity and Lead Times

Contact Info

Product

Resources

About