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Global Supply Chain Performance and Risk Optimization

The Value of Real Options Flexibility Demonstrated in the Global Automotive Industry

  • Authors
  • Rob¬†Smith

Table of contents

  1. Front Matter
    Pages I-XV
  2. Rob Smith
    Pages 1-16
  3. Rob Smith
    Pages 155-165
  4. Rob Smith
    Pages 167-174
  5. Back Matter
    Pages 175-267

About this book

Introduction

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.

Keywords

Automotive Industry Foreign Exchange Risk Real Options Risk Optimization Supply Chain Management Supply Chain Network Supply Chain Performance optimization

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-322-81407-4
  • Copyright Information Gabler Verlag | Springer Fachmedien Wiesbaden GmbH, Wiesbaden 2002
  • Publisher Name Deutscher Universit√§tsverlag
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-8244-7551-3
  • Online ISBN 978-3-322-81407-4
  • Buy this book on publisher's site
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