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Designing Supply Chains for New Product Development
book

Designing Supply Chains for New Product Development

by Antonio Arreola-Risa
July 2013
Intermediate to advanced content levelIntermediate to advanced
178 pages
3h 54m
English
Business Expert Press
Content preview from Designing Supply Chains for New Product Development

Chapter 8

Cost Modeling

Every product has a cost structure, and good cost models are imperative for being able to understand complex business situations. But what happens when the product is simply “too complex”? There are “too many” processing points, “too many” uncertainties, and “too many” risks? This chapter will explore a couple of different approaches to developing cost models and then demonstrate how using those models assists in supplier engagement strategy development.

High-Level Risk Model

The first model to discuss is what we called a “high-level” risk model (HLRM). This model was designed to assist the project team in gaining insight regarding possible hedging strategies and their associated costs, against catastrophic events at various ...

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Publisher Resources

ISBN: 9781606493953