Total acquisition cost of overseas outsourcing/sourcing: A framework and a case study

Purpose - The purpose of this paper is to develop a framework of total acquisition cost of overseas outsourcing/sourcing in manufacturing industry. This framework contains categorized cost items that may occur during the overseas outsourcing/sourcing process. The framework was tested by a case study to establish both its feasibility and usability. Design/methodology/approach - First, interviews were carried out with practitioners who have the experience of overseas outsourcing/sourcing in order to obtain inputs from industry. The framework was then built up based on combined inputs from literature and from practitioners. Finally, the framework was tested by a case study in a multinational high-tech manufacturer to establish both its feasibility and usability. Findings - A practical barrier for implementing this framework is shortage of information. The predictability of the cost items in the framework varies. How to deal with the trade off between accuracy and applicability is a problem needed to be solved in the future research. Originality/value - There are always limitations to the generalizations that can be made from just one case. However, despite these limitations, this case study is believed to have shown the general requirement of modeling the uncertainty and dealing with the dilemma between accuracy and applicability in practice. © Emerald Group Publishing Limited.

Independence is elusive: set size effects on encoding precision in visual search.

Looking for a target in a visual scene becomes more difficult as the number of stimuli increases. In a signal detection theory view, this is due to the cumulative effect of noise in the encoding of the distractors, and potentially on top of that, to an increase of the noise (i.e., a decrease of precision) per stimulus with set size, reflecting divided attention. It has long been argued that human visual search behavior can be accounted for by the first factor alone. While such an account seems to be adequate for search tasks in which all distractors have the same, known feature value (i.e., are maximally predictable), we recently found a clear effect of set size on encoding precision when distractors are drawn from a uniform distribution (i.e., when they are maximally unpredictable). Here we interpolate between these two extreme cases to examine which of both conclusions holds more generally as distractor statistics are varied. In one experiment, we vary the level of distractor heterogeneity; in another we dissociate distractor homogeneity from predictability. In all conditions in both experiments, we found a strong decrease of precision with increasing set size, suggesting that precision being independent of set size is the exception rather than the rule.