Supply chain and operations decisions

Many valuation techniques are employed in the industry. While it is interesting to understand the details of these techniques, this chapter s focus is to connect how supply chain and operations decisions affect a company s valuation. Investors and valuation experts differ on the merits of the various valuation techniques and when each is most appropriate to use. There are several resources that can provide additional information for you. 

This chapter discusses some of the common tools financial experts and others use to make supply chain and operations decisions. The tools help inform decisions as well as communicate how the company is affected financially. After reading this chapter, you will be able to apply the tools and communicate more clearly. 

Rarely, all of the information needed for analysis is made obvious on the balance sheet, income statement, or statement of cash flows. Instead, it may require closer examination to find the necessary information. The numbers reported in the financial statements may not be exactly what is needed for financial analysis and day-to-day decision making by those in supply chain and operations because of the assumptions made by a company s financial experts. Accountants have the liberty to make assumptions based on historical trends when preparing financial statements. Examples of these assumptions include the amount of accounts receivable will not be collected, or what liabilities exist, such as tax, pension, and legal liabilities. Accountants also make assumptions about how to value tangible assets, how to value brand and intangible assets, and an amount to allocate to goodwill. As a result of these assumptions, financial results can vary widely. 

How to quantitahvely integrate supply chain risks in decision making at both strategic and operational levels ... 

Discuss at least two differences among the strategic, tactical, and operational decisions in a supply chain. Give two examples of each type of decision. 

Wu C, Barnes D (2011) A literature review of decision-making models and approaches for partner selection in agile supply chains. J Purch Supply Manag 17(4) 256—274 Wu T, Zhang K (2014) A computational study for common network design in multi-commodity supply chains. Comput Oper Res 44 206-213... 

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