Calculating the Impact of Increased Lead Times of Foreign Purchases

Author(s):

Harding, Michael
Michael Harding, Harding & Associates, 802/453-5379 (harding@gmavt.net)

92nd Annual International Conference Proceedings - 2007 - Las Vegas, NV

Abstract

Since most companies have narrow considerations when deciding to source overseas (often limited to price), supply management tends to be left with many of the delivery problems and the increased need for more raw material to cover unpredictable situations. There are tangible cost increases associated with foreign sourcing and many of these costs are burried in escalating overhe