Discussion Questions
1. Why is it important to consider uncertainty when evaluating supply chain design decisions?
2. What are the major sources of uncertainty that can affect the value of supply chain decisions?
3. Describe the basic principle of DCFs and how it can be used to compare different streams of cash flows.
4. Summarize the basic steps in the decision tree analysis methodology.
5. Discuss why using expected trends for the future can lead to different supply chain decisions relative to decision tree analysis that accounts for uncertainty.
6. What are the major financial uncertainties faced by an electronic components manufacturer deciding whether to build a plant in Thailand or the United States?
1. What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product?