What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product?
Answer to relevant QuestionsWhat role does forecasting play in the supply chain of a build-to-order server manufacturer such as Dell? Why should a manager be suspicious if a forecaster claims to forecast historical demand without any forecast error? What types of industries or situations are best suited to the chase strategy? The flexibility strategy? The level strategy? In what industries would you tend to see dual facility types (some facilities focusing on only one type of product and others able to produce a wide variety)? In what industries would this be relatively rare? Why? In what way can improper incentives lead to a lack of coordination in a supply chain? What countermeasures can be used to offset this effect?
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