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Exploring the manufacturing reshoring decision-making process using system dynamics
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Jönköping University, Jönköping International Business School, JIBS, Media, Management and Transformation Centre (MMTC).ORCID iD: 0000-0002-6924-3065
Jönköping University, School of Engineering, JTH, Industrial Product Development, Production and Design.ORCID iD: 0000-0002-1318-1598
Jönköping University, School of Engineering, JTH, Industrial Product Development, Production and Design.ORCID iD: 0000-0001-8188-7288
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-0243-4916
2022 (English)In: SPS2022: Proceedings of the 10th Swedish production symposium / [ed] A. H. C. Ng, A. Syberfelt, D. Högberg & M. Holm, Amsterdam: IOS Press, 2022, p. 380-391Conference paper, Published paper (Refereed)
Abstract [en]

Reshoring manufacturing is a strategic decision because of its cost, implications, and complexity. Existing models have largely focused on cost aspects in reshoring decisions and are considered limited in assisting practitioners in the reshoring decision-making process. Variables like cost and quality have been the most important, whereas environment and sustainability seem not a priority, arguing for the myopic nature of these decisions. Therefore, this study employs system dynamics (SD) to expand practitioners’ mental models for the reshoring decision-making process. To do so, first, variables and heuristics are retrieved from the literature. Next, an industry expert is interviewed to have a practitioner’s input. Finally, a descriptive SD model is built by connecting variables and heuristics. The findings indicate that the behavior of the variables in reshoring decisions is dynamic over time. Furthermore, the variables are inter-linked, resulting in non-linear, multi-caused reshoring decisions. The presented SD model allows incorporating the variables that are sometimes difficult to quantify and provides a holistic view of the variables, their relationships, complexities, and the dynamics involved in the reshoring decision-making process. This study contributes to reshoring literature by using SD perspective in the reshoring decision-making process and proposing an SD model for reshoring decision-making. This study assists practitioners in expanding their mental models regarding the reshoring decision-making process. It is further argued that the proposed SD model may work as a generic steppingstone to further develop company-specific feedback-oriented models to support in their reshoring decision-making processes and to support future research on the topic.

Place, publisher, year, edition, pages
Amsterdam: IOS Press, 2022. p. 380-391
Series
Advances in Transdisciplinary Engineering, ISSN 2352-751X, E-ISSN 2352-7528 ; 21
Keywords [en]
reshoring, backshoring, decision-making, modeling, system dynamics
National Category
Business Administration Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:hj:diva-56449DOI: 10.3233/ATDE220157Scopus ID: 2-s2.0-85132839723ISBN: 978-1-64368-268-6 (print)ISBN: 978-1-64368-269-3 (electronic)OAI: oai:DiVA.org:hj-56449DiVA, id: diva2:1657604
Conference
10th Swedish Production Symposium (SPS2022), School of Engineering Science, University of Skövde, Sweden, April 26–29 2022
Available from: 2022-05-11 Created: 2022-05-11 Last updated: 2022-09-08Bibliographically approved

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de los Rios Pérez, Daniel A.Sequeira, MovinLinnéusson, GaryPardillo-Baez, Yinef

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