Why Quants Should Manage Your Supply Chain Risk
Harvard Business Review
NOVEMBER 9, 2012
When Thai flooding created significant shortages in the hard disc drive market, manufacturers lost millions of dollars. higher capital costs, business continuity insurance, dual-tooling in manufacturing) and the latter refers to costs that are not always visible or recorded but exist nonetheless (opportunity costs of not entering a risky market, concentration risk in the supply base, reduced valuations, etc.).