Designing The Global Supply Chain

 

Designing Global Supply Chain Networks

LEARNING OBJECTIVES

After reading this chapter, you will be able to

1. Identify factors that need to be included in total cost when making global sourcing decisions.

2. Define uncertainties that are particularly relevant when designing global supply chains.

3. Explain different strategies that may be used to mitigate risk in global supply chains.

4. Understand decision tree methodologies used to evaluate supply chain design decisions under uncertainty.

Earlier Edition Chapter: Network Design in an Uncertain Environment

Globalization has offered tremendous opportunity as well as increased risk in the development of supply chains. Companies like Zara have taken full advantage of globalization. In contrast, several companies could not manage the increased risk that has accompanied globalization. Managers must account for both opportunities and uncertainties over the long term when designing a global supply chain network. In this chapter, the main focus is on the sources of risk for global supply chains, risk mitigation strategies,  the methodologies used to evaluate network design decisions under uncertainty. The discussion helps in  improving global supply chain decisions.