Method: from Bill of Materials to Bottleneck Score
How does Setcoin decide which parts are bottlenecks, and how can a reader test the ranking?
Chapter summary
Setcoin scores each critical part on five measures, each from 1 (no constraint) to 5 (severe): lead time, supplier concentration, demand growth, difficulty of substitution and geographic or political exposure.
Key takeaways
- 1
The scores are weighted 25%, 25%, 20%, 15% and 15% and scaled to 0–100.
- 2
A score of 75 or more is "critical", 64–74 "serious" and below 64 "watch".
- 3
The weights are a judgement; the bottleneck model lets readers change them and see whether the ranking holds.
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