ABSTRACT
The CEO of a major automotive manufacturer has announced plans to source $1 billion in components to distant emerging markets in order to save on manufacturing costs. Middle-level technical managers have identi‚ed dozens of supply-chain risks associated with sourcing components of different levels of complexity. These managers thus face the challenge of identifying which components to source, those that will save enough money to more than compensate for the new risks. In addition, they are searching for cost-effective ways to mitigate the risks for those components that will be sourced.
