Optimal manufacturing outsourcing decision based on the degree of manufacturing process standardization

In recent decades, manufacturing outsourcing has become a strategic trend in industry as manufacturing organizations desire to reduce costs and focus on core competencies. Organizations have a range of location options for outsourcing to select, such as, local, nearshore and offshore. Lower labor cost is considered as a dominant factor for many companies to choose outsourcing and foreign vendors in particular. However, higher transaction costs...