Overview
Advanced to semi-finals among 40+ teams in the Tesla Global Sourcing Strategy Case Competition, presenting supply chain optimization strategies to Tesla executives.
The Challenge
Tesla faced a critical decision regarding a key vehicle component affected by 25% tariff impacts. The challenge was to optimize sourcing across three manufacturing locations:
- United States - Domestic production
- Mexico - USMCA trade benefits
- China - Established supply chain infrastructure
My Approach
Cost-Optimization Model
Built a comprehensive cost-optimization model analyzing a $200M+ sourcing decision across multiple scenarios:
- Analyzed five-year unit costs under various tariff scenarios
- Modeled production capacity constraints at each site
- Incorporated logistics and transportation costs
- Factored in currency exchange rate fluctuations
Monte Carlo Simulation
Implemented Monte Carlo simulation to:
- Quantify uncertainty in demand forecasts
- Model tariff escalation probabilities
- Assess supply chain disruption risks
- Calculate confidence intervals for cost projections
Key Finding: Operational Flexibility Value
Quantified $18.7M in operational flexibility value through:
- Strategic site selection enabling production shifting
- Multi-plant switching options to hedge against disruptions
- Scenario-based contingency planning
Strategic Recommendation
Delivered a recommendation balancing:
- Cost Minimization - Optimal allocation across sites
- Operational Flexibility - Ability to shift production as conditions change
- Risk Hedging - Protection against tariff escalation and supply chain disruptions
Skills Applied
- Supply Chain Optimization
- Cost Model Development
- Monte Carlo Simulation
- Strategic Data Analysis
- Data-driven Decision Making
- Executive Presentation