Question: How would i properly answer the following question: A direct consequence of defining the type of multimodality and commercial corridors to be used by the
How would i properly answer the following question: A direct consequence of defining the type of multimodality and commercial corridors to be used by the organization or business is to define DEMAND. The SUPPLY side of the equation is usually determined by operations (capacity, production lines, size of the business in terms of HR and output, the budget, and selection of suppliers, to name a few functions). Nevertheless, defining the market size and targets are also equally important. With demand and supply, the economic benefits of each multimodal supply chain can be determined. Among the below methodologies of engineering economics used to calculate the benefits of different capital investment projects, please select one you feel applies well to your line of business and explain how it could be used to evaluate a multimodal supply chain.
1. Internal Rate of Return (IRR)
2. Net Present Value (NPV)
3. Return over Investment (ROI)
4. Discounted Cost/Benefit Analysis (B/C)
5. Payback Period
6. Future Value (FV)
7. Equivalent Annual Worth (annuities)
Note: The calculation of the financial benefits of a multimodal supply chain is beyond a simple budget. The above methodologies of engineering economics require projections of revenue to be incorporated into the analysis. Another key ingredient is the HORIZON of ANALYSIS and a type of external rate
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