A Study Proving the Possibility to Reallocate the Power Supply Production of the PAYER Group from China to Eastern Europe

Michaela Ofner

Research output: ThesisMaster's Thesis


The aim of this thesis is to find out whether it is economical for PAYER to reallocate the production of power supplies from China to Eastern Europe. PAYER is a company that produces different kinds of personal care products, like shavers or hair clippers. Currently, the power supplies are purchased from a supplier in China who is also responsible for the development of the devices. As a basis for further investigations, an As Is Analysis is done in the first step. The inventory value of power supplies is displayed to find out details about the capital commitment and the relation between active and obsolete devices. Furthermore, the different versions are analysed according to their individual characteristics. Apart from that, the actual supply chain from China to PAYER Industries Hungary is described to find out whether assumed lead times for the power supplies are justified. Then different scenarios are created which illustrate how the reallocation of the production could be organised. Those individual processes are evaluated with their total costs of ownership. The alternatives are always compared to the As Is State. Five scenarios are examined whereas the most cost-efficient is used for additional research. This means that the obsolete product rates are included in the calculation and that forms the basis for a supplementary assessment of the scenarios. It serves to find out whether the alternative process is more economical under this circumstance than the As Is Situation. Furthermore, the inventory value of power supplies for the first half of the year 2009 is shown, to make an inference on the impact of the improvement concerning lead times of the devices. Moreover, a competence matrix is displayed which identifies the competences that are needed within the scenarios, in order to fulfill the individual requirements. This helps to detect knowledge gaps and define related risks.
Translated title of the contributionEine Studie über die Möglichkeit einer Verlagerung der Netzgeräteproduktion der PAYER Group von China nach Osteuropa
Original languageEnglish
  • Zsifkovits, Helmut, Supervisor (internal)
  • Bekkers, Rob, Supervisor (external), External person
Award date18 Dec 2009
Publication statusPublished - 2009

Bibliographical note

embargoed until null


  • reallocation inventory value obsolete product rates supply chain competence matrix total cost of ownership

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