Conference proceeding
Valuing Operational Flexibility in Manufacturing Systems Using Real Options
IIE Annual Conference. Proceedings, p.1
01/01/2002
Abstract
In this paper, we look across the manufacturing enterprise to consider opportunities to improve value by switching among suppliers, plants, and markets. We extend this model to address the reality that these switches may often take a period of transition time, rather than occur instantaneously. We value the real options associated with this flexible approach using both a lattice and Monte Carlo simulation. This valuation gives decision makers a way to choose the appropriate manufacturing enterprise strategy based on an integrated view of the market dynamics. Overall, the manufacturing enterprise maximizes its expected, discounted profit through effective supply chain network decisions. [PUBLICATION ABSTRACT]
Details
- Title: Subtitle
- Valuing Operational Flexibility in Manufacturing Systems Using Real Options
- Creators
- Harriet Black NembhardLeyuan ShiMehmet Aktan
- Resource Type
- Conference proceeding
- Publication Details
- IIE Annual Conference. Proceedings, p.1
- Publisher
- Institute of Industrial and Systems Engineers (IISE)
- Language
- English
- Date published
- 01/01/2002
- Academic Unit
- Industrial and Systems Engineering; Engineering Administration
- Record Identifier
- 9984121962902771
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