Real Options in Supply Chain Management
SCM Research
JUNE 11, 2012
'A real option is “a right – without an obligation – to invest resources (e.g., labor, money, time) toward a course of action at a future point in time” ( McCarter et al., 2011 ). SCM applications of real options are scarce. In their illustrating HBR article, It may be cheaper to manufacture at home , de Treville and Trigeorgis (2010) argue that supply chain managers “typically rely on the discounted cash flow (DCF) model to help them value the alternatives” H
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