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Case
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Reference no. UVA-OM-1171
Subject category: Production and Operations Management
Authors: Timothy M Laseter (Darden School of Business, University of Virginia); James Hammer (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Originally published in: 2005
Version: 30 August 2018
Revision date: 10-Sep-2018
Length: 8 pages
Data source: Field research
Topics: Outsourcing; Cost modeling; Scale curves; Cost drivers; Competitive analysis; Operations strategy; Operations management; Manufacturing; Purchasing strategy
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Abstract

This disguised case examines the issue of outsourcing to a low-cost country based on a thorough analysis of competitive cost drivers. The case demonstrates that labor cost is only one potential advantage and that transportation cost and other factors could more than offset labor savings in some product lines.
Industry:
Other
Teaching note
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Reference no. UVA-OM-1171TN
Subject category: Production and Operations Management
Authors: Timothy M Laseter (Darden School of Business, University of Virginia); Joshua Metz (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Originally published in: 2012
Version: 30 August 2018
Length: 5 pages
Data source: Field research
View full details

About

Abstract

This disguised case examines the issue of outsourcing to a low-cost country based on a thorough analysis of competitive cost drivers. The case demonstrates that labor cost is only one potential advantage and that transportation cost and other factors could more than offset labor savings in some product lines.

Settings

Industry:
Other

Related

Teaching note
-
Reference no. UVA-OM-1171TN
Subject category: Production and Operations Management
Authors: Timothy M Laseter (Darden School of Business, University of Virginia); Joshua Metz (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Originally published in: 2012
Version: 30 August 2018
Length: 5 pages
Data source: Field research
View full details