Rethinking lead time reduction investment: A real options perspective

Détails

ID Serval
serval:BIB_B2DA9100BDB3
Type
Actes de conférence (partie): contribution originale à la littérature scientifique, publiée à l'occasion de conférences scientifiques, dans un ouvrage de compte-rendu (proceedings), ou dans l'édition spéciale d'un journal reconnu (conference proceedings).
Collection
Publications
Institution
Titre
Rethinking lead time reduction investment: A real options perspective
Titre de la conférence
POMS annual conference proceedings
Auteur⸱e⸱s
de Treville S., Trigeorgis L., Crego A.
Editeur
Production and Operations Management Society
Adresse
Chicago, USA
Statut éditorial
Publié
Date de publication
2005
Peer-reviewed
Oui
Pages
22
Langue
anglais
Résumé
Although it is generally agreed that companies are better off with shorter manufacturing lead times, investment in lead time reduction is often difficult to justify using traditional project valuation techniques such as net present value (NPV). In this article, we suggest that evaluating investment in lead time reduction from a real options perspective facilitates quantification of the value of manufacturing flexibility brought about by lead time reduction, particularly the value of the option to time production commitment based on better demand information. This flexibility is significant when demand is volatile. We also present examples to demonstrate how options inherent in lead time reduction can have synergistic effects with related investments, such that a combination of such investments may have positive value even when the NPV of the individual investments is negative.
Création de la notice
29/05/2009 10:42
Dernière modification de la notice
20/08/2019 15:21
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