2020
DOI: 10.1111/poms.13135
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Offshore versus Onshore Sourcing: Quick Response, Random Yield, and Competition

Seung Hwan Jung

Abstract: Motivated by the recent reshoring initiatives, we study firms’ global sourcing strategies from two different supply sources, offshore and onshore supply bases, under supply and demand uncertainty. Interestingly, even though onshore sourcing has a significant benefit from market responsiveness, offshore sourcing having no cost advantage also provides benefits in the presence of yield uncertainty and market competition. If competing firms commit single sourcing, one firm may choose inferior offshore sourcing to … Show more

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Cited by 36 publications
(24 citation statements)
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“… Management International Review 2020 Gurvich, V.J., Hussain, A.S. AAPS PharmaSciTech 2020 Gutiérrez, Ó. Journal of Operational Research Society 2020 Jung, S.H. Production and operations management 2020 Kandil, N., Battaia, O., Hammami, R. Annual Reviews in Control 2020 Kurata, H., Nomura, R., Suga, N. Review of International Economics 2020 Lund, H.B., Steen, M. Geoforum 2020 Martínez-Mora, C., Merino, F. Journal of Manufacturing Technology Management 2020 Moretto, A., Patrucco, A.S., Harland, C.M.…”
Section: Appendixmentioning
confidence: 99%
“… Management International Review 2020 Gurvich, V.J., Hussain, A.S. AAPS PharmaSciTech 2020 Gutiérrez, Ó. Journal of Operational Research Society 2020 Jung, S.H. Production and operations management 2020 Kandil, N., Battaia, O., Hammami, R. Annual Reviews in Control 2020 Kurata, H., Nomura, R., Suga, N. Review of International Economics 2020 Lund, H.B., Steen, M. Geoforum 2020 Martínez-Mora, C., Merino, F. Journal of Manufacturing Technology Management 2020 Moretto, A., Patrucco, A.S., Harland, C.M.…”
Section: Appendixmentioning
confidence: 99%
“…That is, if retailer i purchases 𝑞 from the supplier, they will only receive 𝑦 𝑞 . Similar to Jung [7], we assume a random…”
Section: Supply Uncertaintymentioning
confidence: 99%
“…This phenomenon is referred to as information leakage (Kong et al [3]). Alternatively, supply variability may be caused by equipment failure, human error, as often seen in the agriculture, automobile, and vaccine industries (Zhou et al [4]; Dai et al [5]; Arifo glu et al [6]; Jung [7]). Uncertainties in the yield processes of a common industry are often positively correlated (Jung [7]).…”
Section: Introductionmentioning
confidence: 99%
See 1 more Smart Citation
“…For a complete review, we refer the reader to Yano and Lee [37] and Grosfeld-Nir and Gerchak [11]. Jung [18] compared offshore sourcing and onshore sourcing under yield and demand uncertainty. Hsieh and Lai [16] explored the order allocation for a capacity-constrained manufacturer, who sources from a stable-yield supplier producing standard-quality components and an unstable-yield supplier producing high-quality components.…”
Section: Literature Reviewmentioning
confidence: 99%