Method of mapping dynamic market conditions to global manufacturing site analysis

Abstract

A system and method for automatically simulating the affect of a plurality of factors on the cost of goods sold (COGS) resulting from changes in the allocation of goods to be sold in a plurality of predetermined markets. A predetermined plurality of markets are defined, each of which is allocated a default percentage of total goods to be sold. A plurality of production sites are then defined, their associated cost factors determined, their respective output assigned to predetermined markets, and the weighted, average unit COGS for each market is then calculated. A defined market is then selected for sensitivity simulation and its associated sales allocation is iteratively decremented by a predetermined percentage for reallocation to other markets. Each market's weighted, average unit cost is recalculated after each iteration, and once reallocation is completed, the global, average unit COGS is calculated. The process is then repeated for other predetermined markets and the average rate of unit cost change is calculated. Candidate production sites are then defined, with their associated cost factors, and the process is repeated until market sensitivity simulation is completed. Unit COGS results are then generated and presented as a graphical representation of the sensitivity of the COGS to changes in the allocation of goods to be sold to one or more predetermined markets.