JSW Steel Ltd.: A Logistics Dilemma
(3 pages of text)
The customer relationship manager at JSW Steel Ltd., a large steel manufacturer in India, needed to analyze his available transportation and logistics options to meet an urgent order for a long-time and valued client. The manager needed to decide whether to send the shipment through the customary rail route or, instead, to use the new sea route that his company had recently developed. His dual objective was to meet the customer's requirements in time, while also delivering some financial benefit to boost his company’s quarterly results.
This case introduces decision tree analysis, specifically within a logistics set-up, to postgraduate students in management, industrial management, or industrial engineering courses. Students will utilize the data provided in the case to develop the decision tree and the expected payoffs. The case also provides insights on steel manufacturing and the challenges associated with that industry. After completion of the case, students will be able to
- understand decision-making under risk in logistics management;
- develop a decision tree from provided data and calculate the expected payoffs using the expected monetary value approach;
- analyze decision alternatives and their associated risks in decision-making; and
- evaluate the expected value of perfect information and associate the concept with decision-making.
India, Large, 2015
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