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IBM & EMSs Partnerships: An Operations Management Case Study.
Although outsourcing becomes one of the options for original equipment manufacturers (OEMs) to reduce costs and increase returns, it has advantages and disadvantages. The following is a discussion on the IBM's decision on outsourcing computer assembly to some electronic manufacturing services (EMSs). It discusses the advantages and disadvantages of the decision, and recommends some operations strategies to both IBM and EMSs.
ADVANTAGES AND DISADVANTAGES.
The main advantages from outsourcing IBM's computer assembly are focusing on core competencies, reducing costs, and access…
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