@conference{Disney2013, author = {S.M. Disney and P. McCullen}, title = {Global supply chain design: Understanding costs through dynamic modelling}, booktitle = {18th International Symposium on Logistics}, year = {2013}, pages = {8 pages}, address = {Vienna, Austria}, month = {July 7th–10th}, doi = {10.13140/2.1.2832.9283}, url = {https://www.researchgate.net/publication/271587860_Global_supply_chain_design_Understanding_costs_through_dynamic_modelling}, abstract = {We study the economics of the outsourcing decision from a supply chain dynamics perspective. Production can be either in the UK, where products are delivered on trucks to a UK warehouse, or in China where product is shipped via a container liner to a UK warehouse. We show that the traditional " landed cost " approach of purchase price plus transport costs overestimates the benefit from outsourcing products to China. However, the dynamic costs associated with the pipeline inventory, the UK inventory & the UK warehousing capacity costs associated with unloading the containers is not large enough to change the outsourcing decision.} }