Global Manufacturing Strategy Analysis

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This research is concerned with the development of a stochastic optimization modeling approach that supports the evaluation and the analysis of global manufacturing strategies under uncertainty. The research project will introduce a normative model that considers risk and return tradeoffs throughout the world supply chain network. The sources of uncertainty to be considered include currency fluctuations, market demand variation and price risk. Tradeoffs occur through corporate taxes and transfer prices; duties and tariffs; production and transportation costs; the cost of manufacturing flexibility; global financing costs; and international pricing differences. Decisions concerning facility size and location, material flows, product mix, overhead cost allocation, financing and pricing will be accounted for in the model framework.