Incremental Analysis For Short-Term Decision Making

In supply chain management, one will have to apply cost data in order to make critical decisions in the business.  We learned about the Strategic Profit Model (SPM) in Week Two, but we will learn in Week Four how to take cost data and apply it in incremental analysis on to special supply chain situations.  These decisions include: (1) make/buy decisions (outsourcing), special-order decisions, eliminating business segments, sell-or-process further decisions and prioritization of products.  These are extremely important decisions that allow the supply chain to provide the flexibility to meet and exceed customer expectations.