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Principles of Supply Chain Management, Second Edition, 2nd Edition
book

Principles of Supply Chain Management, Second Edition, 2nd Edition

by Richard E. Crandall, William R. Crandall, Charlie C. Chen
December 2014
Beginner content levelBeginner
717 pages
29h 18m
English
CRC Press
Content preview from Principles of Supply Chain Management, Second Edition, 2nd Edition
307Logistics
normal, tangible costs. On the other extreme, a crisis may occur infrequently but could be
very costly, even disastrous. An expected value (EV) analysis can be helpful in projecting
the possible economic impact of such disruptions.
Step 5. Estimate the Return on Invested Capital
Use a time value of money approach to assess the total return on invested capital for the
offshore outsourcing project. Selecting a reasonable time horizon is critical because it is
unlikely that the initial arrangement will last for very long. A discounted cash ow analy-
sis can show the return on invested capital. It should include the initial costs of dropping
the present system and recovering these costs over a relatively short period. Subsequent
costs ...
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Publisher Resources

ISBN: 9781482212020