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A Study On Outsourcing Decision-making Strategry For OEM And CM

Posted on:2012-12-03Degree:MasterType:Thesis
Country:ChinaCandidate:J HanFull Text:PDF
GTID:2189330338984366Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
With the rapid development of science and technology, product replacement cycles grow rapidly and user needs and personal requirements are diversified. In order to better respond to new competitive challenges to the enterprise environment, companies are choosing to outsource, through cooperation with third-party companies to fully play their respective comparative advantages, and improve the competitiveness of enterprises.Contract manufacturing is a business model of providing various manufacturing services. It is the result of strategic outsourcing by multinational companies to adjust their business. Many emerging high-tech enterprises fully implement contract manufacturing from the start of organization, and contract manufacturing has become an important outsourcing pattern and trend for multinational companies.However, systematical researches on outsourcing strategy structure are limited, and it especially lacks outsourcing decision-making strategy for original equipment manufacturer and contract manufacturer. In this thesis, supply chain management, risk management and the theory of game theory are used in the research on outsourcing strategy for original equipment manufacturers and contract manufacturers. Based on contract manufacturing industry trends and characteristics, this thesis summarized and then proposed the outsourcing decision-making strategy and relationship management methods for both OEM and CM. About outsourcing strategy for original equipment manufacturers, this thesis analyzed strategic outsourcing decisions, discussed the key factors of outsourcing decision-making, and further made a risk analysis of outsourcing decisions. And it also analyzed the relationship management of original equipment manufacturers and contract manufacturers. It discussed the evaluation and selection of contract manufacturers and then proposed the process map of the contract manufacturer selection. Then it presented the suggestions for China contract manufacturers in outsourcing. It proposed a game model based on investment cost allocation when original equipment manufacturers transferred new technology to the contract manufacturers for increasing the products'value. Through the development of analytical models that maximized the profits, the optimal outsourcing decisions for original equipment manufacturers and contract manufacturers were explored under both centralized decision and decentralized decision scenarios. It was also proved that centralized decision had more Pareto advantages than decentralized decision.
Keywords/Search Tags:outsourcing, supply chain management, OEM, CM, game theory
PDF Full Text Request
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