Ebook: Global Supply Chain Performance and Risk Optimization: The Value of Real Options Flexibility Demonstrated in the Global Automotive Industry

Today's trends toward increasing industry consolidation, globalization and platform product strategies underscore the importance of strategic supply chain design as a major business imperative. In parallel, Real Options theory is replacing net present value as the central paradigm for large-scale investment planning. Applied to operations, the Real Options strategy enables a firm to profit from flexibility designed into its supply chain.

Rob Smith quantifies the value of Real Options using an existing global supply chain designed to support world car vehicle platform production. The Real Options supply chain strategy is compared to four others prevalent in industry - Single Sourcing, Dual Sourcing, Local Content, and Centers of Excellence - and is demonstrated to yield superior financial results. The author presents an action plan for implementing Real Options as a guide to practitioners intent on exploiting the strategy's power to minimize foreign exchange risk and maximize the financial performance potential unique to global supply chain networks.

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Today's trends toward increasing industry consolidation, globalization and platform product strategies underscore the importance of strategic supply chain design as a major business imperative. In parallel, Real Options theory is replacing net present value as the central paradigm for large-scale investment planning. Applied to operations, the Real Options strategy enables a firm to profit from flexibility designed into its supply chain.

Rob Smith quantifies the value of Real Options using an existing global supply chain designed to support world car vehicle platform production. The Real Options supply chain strategy is compared to four others prevalent in industry - Single Sourcing, Dual Sourcing, Local Content, and Centers of Excellence - and is demonstrated to yield superior financial results. The author presents an action plan for implementing Real Options as a guide to practitioners intent on exploiting the strategy's power to minimize foreign exchange risk and maximize the financial performance potential unique to global supply chain networks.

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Today's trends toward increasing industry consolidation, globalization and platform product strategies underscore the importance of strategic supply chain design as a major business imperative. In parallel, Real Options theory is replacing net present value as the central paradigm for large-scale investment planning. Applied to operations, the Real Options strategy enables a firm to profit from flexibility designed into its supply chain.

Rob Smith quantifies the value of Real Options using an existing global supply chain designed to support world car vehicle platform production. The Real Options supply chain strategy is compared to four others prevalent in industry - Single Sourcing, Dual Sourcing, Local Content, and Centers of Excellence - and is demonstrated to yield superior financial results. The author presents an action plan for implementing Real Options as a guide to practitioners intent on exploiting the strategy's power to minimize foreign exchange risk and maximize the financial performance potential unique to global supply chain networks.

Content:
Front Matter....Pages I-XV
Introduction....Pages 1-16
Literature review - basic theories and key contributions....Pages 17-87
Getting to Global - Building a global supply chain network model....Pages 89-124
The cost and value of Real Options flexibility....Pages 125-154
A Real Options Action Plan....Pages 155-165
Areas for further research....Pages 167-174
Back Matter....Pages 175-267

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Today's trends toward increasing industry consolidation, globalization and platform product strategies underscore the importance of strategic supply chain design as a major business imperative. In parallel, Real Options theory is replacing net present value as the central paradigm for large-scale investment planning. Applied to operations, the Real Options strategy enables a firm to profit from flexibility designed into its supply chain.

Rob Smith quantifies the value of Real Options using an existing global supply chain designed to support world car vehicle platform production. The Real Options supply chain strategy is compared to four others prevalent in industry - Single Sourcing, Dual Sourcing, Local Content, and Centers of Excellence - and is demonstrated to yield superior financial results. The author presents an action plan for implementing Real Options as a guide to practitioners intent on exploiting the strategy's power to minimize foreign exchange risk and maximize the financial performance potential unique to global supply chain networks.

Content:
Front Matter....Pages I-XV
Introduction....Pages 1-16
Literature review - basic theories and key contributions....Pages 17-87
Getting to Global - Building a global supply chain network model....Pages 89-124
The cost and value of Real Options flexibility....Pages 125-154
A Real Options Action Plan....Pages 155-165
Areas for further research....Pages 167-174
Back Matter....Pages 175-267
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