Cost and Benefit Analysis
Introduction:
In this exercise, the student will consider cost/benefit analysis as a tool to guide innovation and supply chain modification.
Tasks:
- Discuss if cost/benefit analysis should be applied to every change considered for a supply chain.
- Discuss the strengths and weaknesses of cost/benefit analysis.
- Discuss which is more valuable to understand, the costs or the benefits of a supply chain innovation. Explain why this is so.