Journal article
Screening location strategies to reduce exchange rate risk
European journal of operational research, Vol.136(3), pp.573-590
02/01/2002
DOI: 10.1016/S0377-2217(01)00065-0
Abstract
A firm that markets its products and services world-wide may face significant financial risk due to exchange rate fluctuations unless it maintains an international sourcing/production network. Thus, the firm must evaluate various sourcing/production network designs. The selection of the appropriate design is not straight-forward since decisions are made in an environment of uncertainty and involve multiple time periods. We propose a two-phase approach to screen various alternative designs (configurations) utilizing a number of criteria, and illustrate it using a popular Harvard Business School case. As by-products, we introduce a new criterion for making a pairwise stochastic comparison of alternatives and demonstrate the value of maintaining excess geographically-dispersed production capacity.
Details
- Title: Subtitle
- Screening location strategies to reduce exchange rate risk
- Creators
- Timothy J Lowe - University of IowaRichard E Wendell - University of PittsburghGang Hu - Boston College
- Resource Type
- Journal article
- Publication Details
- European journal of operational research, Vol.136(3), pp.573-590
- DOI
- 10.1016/S0377-2217(01)00065-0
- ISSN
- 0377-2217
- eISSN
- 1872-6860
- Publisher
- Elsevier B.V
- Number of pages
- 18
- Language
- English
- Date published
- 02/01/2002
- Academic Unit
- Business Analytics
- Record Identifier
- 9984963119902771
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