Models

Building Onshore Versus Offshore Risk Model

The purpose of this model is to provide a comparison between building an onshore plant in the U.S. and building an offshore plant in China. The model is for a company based in the U.S. with sales in the U.S. However, despite transportation costs, there might be benefits to building in China. The model includes uncertainty in the exchange rate, weekly demand, and amounts of extra weekly capacity available. The future exchange rates are based on fitting historical exchange rates with @RISK's Time Series Fit tool.


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