Publications
Publications
- August 2017 (Revised September 2022)
- HBS Case Collection
Fuyao Glass America: Sourcing Decision
By: Willy Shih
Abstract
In today's global economy, what are the factors that go into production location choice? This case is set in the world's second largest automotive glass producer as it expands from China into the United States. To meet a very aggressive cost target, management is faced with the alternatives of fulfilling the contract from its new Ohio factory, which can only produce above the target cost because it is still on a learning curve, or it can fulfill from its Tianjin, China, factory, which can produce below the cost target but will incur extensive shipping costs and require a far greater amount of inventory holding. This case examines a core question facing managers who want to produce physical products for world markets.
Keywords
Supply Chains; Globalization Of Supply Chain; Manufacturing Footprint; Manufacturing; Manufacturing Strategy; Global Strategy; Supply Chain; Globalization; Supply Chain Management; Production; Logistics; Strategy; Auto Industry; Manufacturing Industry; United States; China
Citation
Shih, Willy. "Fuyao Glass America: Sourcing Decision." Harvard Business School Case 618-007, August 2017. (Revised September 2022.)