Supply Chain Management, Ch. 11
Southern Common Market (MERCOSUR)
Regional trade agreement between Argentina, Brazil, Paraguay, & Uruguay
break-even model
Useful location analysis technique when fixed & variable costs can be determined.
Common Market for Eastern and Southern Africa (COMESA)
a customs union established to foster economic growth among the member countries of Burundi, Comoros, D.R. Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe
quality of life
a feeling of fulfillment, well-being, or satisfaction resulting from factors in the external environment
source factory
a manufacturing facility that has a broader strategic role than an offshore factory, with plant management heavily involved in supplier selection and and production planning
weighted-factor rating model
a method commonly used to compare the attractiveness of several locations along a number of quantitative and qualitative dimensions
lead factory
a source of the process innovation and competitive advantage for the entire organization
sustainable development
development that meets the needs of the present without compromising the ability of future generations to meet their own needs
contributor factory
facility that plays a greater strategic role than a server factory by getting involved in product development and engineering, production planning, making critical procurement decisions and developing suppliers
server factory
factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs
Association of Southeast Asian Nations (ASEAN)
formed in 1967, group of nine Southeast Asian countries that coordinate policies among members in areas such as trade and agriculture
business clusters
geographic concentrations of interconnected companies and institutions; research parks and special economic/industrial zones serve as magnets for business clusters; reasons for success- close cooperation, coordination and trust among clustered companies; fierce competition among rival companies; companies recruit from local skilled workers
right-to-work law
legislation that gives workers the right, to join or not join a union if it is present
offshore factory
manufactures products at low cost with min investment in technical and managerial resources- primary objective is simply to take advantage of low labor costs
outpost factory
manufacturing facility that is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers to get access to the most current info on materials, components, technologies and products
World Trade Organization
only global international organization dealing with the rules of trade between nations; goal is to help producers of goods and services, exporters and importers conduct their business. Located in Geneva, Switzerland established in January 1995
green development
prioritizes what its proponents consider to be environmental sustainability over economic and cultural considerations
