Making Global Supply Chain Design Decisions Under Uncertainty in Practice

7 MAKING GLOBAL SUPPLY CHAIN DESIGN DECISIONS UNDER UNCERTAINTY IN PRACTICE 

Managers should consider the following ideas to help them make better network design decisions under uncertainty. 

Use multiple metrics to evaluate global supply chain networks. Because one metric can give only part of the picture, it is beneficial to examine network design decisions using multiple metrics such as firm profits, supply chain profits, customer service levels, aud response times. Good decisions perform well along most relevant metrics. 

Use financial analysis as an input to decision making, not as the decision-making process. Financial analysis is a great tool in the decision-making process, as it often produces an answer and an abundance of quantitative data to back up that answer. However, financial methodologies alone do not provide a complete picture of the alternatives, and other nonquantifiable inputs should also be considered. 

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