Profit optimization methods and systems for a supply chain are described. An implementation of the technique includes determining the initial cost of components required to manufacture a product, dynamically determining the cost for substitution of at least one product component, dynamically determining the location of at least one substitute component, and manufacturing the product for the lowest cost based on the results of the cost of substitution and substitute component location determinations. At least one of the cost of substitute components and the component locations may be determined at or near the time of manufacture.