Business as usual is the normal state affairs, and the world that managers and policymakers operate within most of the time. Occasionally, however, that world is shaken by unforeseen extreme events, from stock market crashes to earthquakes.
Deciding optimal supply chain lead times involves calculating a number of difficult tradeoffs. New research makes that calculation a lot easier, allowing firms to gain a more precise understanding of the true value of time in the manufacturing supply chain.
OpLab, Laboratory in the Operations Department at HEC Lausanne, has developed a tool to calculate the real value of producing close to demand. And if it were cheaper to “reshore”?
Watch this video by Suzanne de Treville, Professor of Operations Management and OpLab’s Director.
Video: 10 min
The CDF tool is freely available as a public service: cdf-oplab.unil.ch