1 Department of Management Engineering, Technical University of Denmark 2 Quantitative Sustainability Assessment, Department of Management Engineering, Technical University of Denmark 3 University of New South Wales
International outsourcing seems to be a cost efficient way of production. However, there are serious concerns about its long term impacts on the environmental, social and economic sustainability. This paper aims to quantify these impacts by using input output analysis, linear programming and system dynamics in a case study including European electrical industry (outsourcer), Chinese electrical industry (outsourcee) and their main suppliers. Results depict the differences related to the total CO2 emissions, the number of employees and the gross value added of these two regions between a 10% international outsourcing scenario and the baseline scenario due to their differences in production technologies. © 2014 CIRP.
Cirp Annals - Manufacturing Technology, 2014, Vol 63, Issue 1, p. 41-44
International outsourcing; Manufacturing; Sustainable development; Carbon dioxide; Linear programming; Manufacture; Outsourcing; Cost-efficient; Economic sustainability; Electrical industry; Gross value added; Input output analysis; Long-term impacts; Production technology; System Dynamics
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