Fc" is the set of facilities locate

Fc" is the set of facilities located in country c.
A particular strategic configuration of the supply chain will have a certain
expected value and standard deviation of the "NPVNCF". In case the probability
distributions of the parameters are known, a classical risk analysis graph
can be plotted where each candidate configuration is placed according to two
dimensions:one axis representing the expected value and the other axis the
variability or risk measure. Often the corporation does not know the value
of the α parameter that corresponds to its risk preferences and is interested
in identifying several alternative high-quality supply chain configurations for
various values of "α". The efficiency frontier is the collection of supply chain
configurations that are not Pareto-dominated by any other configuration, i.e.
for any efficient or non Pareto-dominated configuration, no configuration exists
that has simultaneously a larger expected value and a smaller variability
operator. For a given set or sample of supply chain configurations that are located
in the risk analysis graph, the sample efficiency envelope (SEE) of those
configurations can be determined by connecting efficient configurations. This
SEE is an approximation of the efficiency frontier. The risk analysis graph
for an industrial case with the standard deviation chosen as risk measure and
including the SEE is shown in Fig. 6.1. The risk analysis graph is a very
powerful communications tool with corporate executives since it displays in
a concise manner the expected yield and risk of several possible candidates.
It is the function of the strategic tools in the APS systems to perform all the
calculations, optimizations, and simulations that are then synthesized into
this graph.