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Value Impacts of Dynamics and Uncertainties in Tactical Supply Chain Design

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Quantitative Models for Value-Based Supply Chain Management

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 660))

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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.

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Authors and Affiliations

  1. Chair of Supply Chain Management, University of Kassel, Kassel, Germany

    Dipl. Math. Marcus Brandenburg

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  1. Dipl. Math. Marcus Brandenburg
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Brandenburg, M. (2013). Value Impacts of Dynamics and Uncertainties in Tactical Supply Chain Design. In: Quantitative Models for Value-Based Supply Chain Management. Lecture Notes in Economics and Mathematical Systems, vol 660. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-31304-2_9

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