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Value Impacts of Dynamics and Uncertainties in Tactical Supply Chain Design

In: Quantitative Models for Value-Based Supply Chain Management

Author

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  • Marcus Brandenburg

    (University of Kassel)

Abstract

Highly competitive consumer markets resulting in growing product launch rates amplify the relevance of tactical supply chain design (TSCD) for new product introduction (NPI). The complexity of TSCD decisions is enhanced by dynamics and uncertainties in supply chains. Beyond this, increasing profitability expectations of capital markets lead to the question how dynamic and uncertain TSCD options for NPI can be assessed regarding their value impacts. This paper proposes a hybrid value- and volume-based evaluation and quantification approach, in which a discrete event simulation model is combined with the discounted cash flow method. The suggested approach is illustrated based on a realistic case example from the fast moving consumer goods industry.

Suggested Citation

  • Marcus Brandenburg, 2013. "Value Impacts of Dynamics and Uncertainties in Tactical Supply Chain Design," Lecture Notes in Economics and Mathematical Systems, in: Quantitative Models for Value-Based Supply Chain Management, edition 127, chapter 0, pages 139-153, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-31304-2_9
    DOI: 10.1007/978-3-642-31304-2_9
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