Regional Economics: Theory and Practice

An approach to decision making on the sourcing maneuver model application

Vol. 15, Iss. 8, AUGUST 2017

Received: 27 February 2017

Received in revised form: 21 March 2017

Accepted: 15 May 2017

Available online: 15 August 2017


JEL Classification: D20, D74, L23, L24, L60

Pages: 1402–1417

Farkhutdinov I.I. Branch of Kazan (Volga Region) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation

Isavnin A.G. Branch of Kazan (Volga Region) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation

Subject This article discusses the issues of improving the competitiveness of the industrial enterprise through the application of sourcing models.
Objectives The article aims to develop a methodology of decision-making on how to adopt a sourcing maneuver model at the industrial enterprise.
Methods Our proposed methodology is based on an analysis of changes in the marginal and net profit values of the output when applying the sourcing maneuver model.
Results We offer our own developed method of decision making to use a sourcing maneuver model at the industrial enterprise.
Conclusions and Relevance The methodology suggested is a good way to balance the manifested various-directional advantages of the sourcing maneuver model components and make a prudent management decision. The results of this work may be of interest to the managers of large industrial enterprises and may also be useful for further research in the field of sourcing.

Keywords: expediency, model, sourcing maneuver, marginal profit, net profit, economic effect


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