Global Supply Chain Performance and Risk Optimization

The Value of Real Options Flexibility Demonstrated in the Global Automotive Industry
Softcover Nachdruck of the original 1. Auflage 2002
ISBN: 978-3-8244-7551-3
Verlag: Deutscher Universitätsverlag

Buch, Englisch, 267 Seiten, Format (B × H): 148 mm x 210 mm, Gewicht: 371 g

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.

Zielgruppe

Research

Autoren/Hrsg.

Smith, Rob

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Bereichsspezifisches Management Einkauf, Logistik, Supply-Chain-Management

Inhaltsverzeichnis

1 Introduction.- 1.1 Motivation.- 1.2 Problem descriptions.- 1.3 Roadmap.- 2 Literature review - basic theories and key contributions.- 2.1 Foreign exchange theory.- 2.2 Foreign exchange risk management theory.- 2.3 Real Options.- 2.4 Global supply chain management.- 2.5 Recap of real option research and applications to date.- 3 Getting to Global - Building a Global supply chain Network Model.- 3.1 The GLBNET supply chain network structure.- 3.2 The process-based business case.- 3.3 The GLBNET Model description and formulation.- 3.4 Introducing Foreign Exchange uncertainty into the GLBNET Model.- 3.5 Real Options Evaluation Methodology.- 4 The cost and value of Real Options Flexibility.- 4.1 Real Options add flexibility to the GLBNET supply chain.- 4.2 Financial Performance - Flexibility makes money.- 4.3 Real Options is the most profitable supply chain strategy.- 4.4 The Face of Flexibility — Value Added and Material Spend allocations under different FX scenarios.- 5 A Real Options Action Plan.- 5.1 Are Real Options appropriate for my supply chain?.- 5.2 Real Options Action Plan.- 5.3 Focus on the engine for continuous improvement — flexibility.- 6 Areas for further research.- 6.1 Contributions of this work.- 6.2 Suggestions for further research.- 6.3 Outlook.- References.- Appendices.- GLBNET Model GAMS formulation.- Mathematical formulation of the GLBNET Model.- Example Executive Summary Report.- Example Executive Sourcing Report.- Example GLBNET Log File.

Über Autor(innen)

Dr. Rob Smith promovierte bei Prof. Dr. Arnd Huchzermeier am Lehrstuhl für Produktionsmanagement der WHU in Vallendar und ist als Executive im Bereich Supply Chain Management tätig.