What does it cost a company when a manager neglects to improve a supply-chain or other manufacturing process over a three-year period? According to conventional management wisdom, such sins of omission are commonplace but difficult, if not impossible, to quantify in dollars and cents.
A new method for putting a price tag on the cost of "managerial neglect" has been developed by two industrial engineers in the University at Buffalo School of Engineering Applied Sciences. The method, and how it would be applied to a two-stage supply chain, is described in the current issue of "The Engineering Economist."
John Della Contrada | EurekAlert!
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