The RightChain Guide to Supply Chain Network Optimization 18

Edward H. Frazelle, Ph.D. Compute Reconfiguration Cost-Benefit . No matter how cc oo ms t peafrfeedc t ti voet hae bn ae swe l inneet wmoarykn od te sbieg ns umf f iacyi e nbte ,t ot hoef f sseat vtihneg sc oasst oc of srt es c oi nn fcilguudrei n gt hteh e c oe sxti s t oi nf g rneel ot wc aot irnkg. pTehrossoen nr ee cl ,o nsfei gvue rr aa tnicoen, rdeislorucapttiinogn intvoentcoursyt,omopeerninsgeravnicde. closing costs, and potential An example network reconfiguration cost-benefit analysis is presented in Figure 19. | 29

Figure 19 Cost-benefit analysis for a network reconfiguration

7. Make Go/No-Go Decision . At this point we’ve done our hc aonmpe rwoovri dk ea. n dWper ec saenn mt e adkme aan raegceommemn tewn di taht itohne bbue ts tt ha ne adl yesciiss iwo ne uc ol tri pmoartaetliyo n .r eI s’ vt es s eweint hm atnhye n ehtiwg hoer skt -ml eovdeel l i negx eacnuatliyvseess i ignn o rt ehde ienx pt he er i ef inncael , di ne ct ui si itoi onns , mg uatd fee be ly oar CpEoOl i toi craCl Oi nOf l. u eTnhceey ogfo own ei t ha stpheeci rt of the organization over another. That is executive prerogative.

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