Abstract
Creating a worldwide network of manufacturing locations is one of the key issues of globalization. In bundling all these locations together a strategic approach is necessary to generate sustainable network structures. However, a worldwide production network becomes alive only if the strategy can be linked with operational reality. This chapter focuses on this link by forming strategic-operational equations to support the decision-making concerning which manufacturing units are more profitable within a changing and developing network. Based on this quantitative outcome, qualitative aspects complement the investment decision. Due to tremendous cost pressures third party manufacturing (3PM) in the automotive business may improve the company’s competitive cost position – under the premise that several Original Equipment Manufacturers’ production as well as product technologies/techniques can be merged.
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Kuhn, J. (2009). Developing a Worldwide Production Network. In: Dekkers, R. (eds) Dispersed Manufacturing Networks. Springer, London. https://doi.org/10.1007/978-1-84882-468-3_8
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DOI: https://doi.org/10.1007/978-1-84882-468-3_8
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