3 paskaita

Question 1

Supply chain risks derives from different flows:

Answer 1

1. Material flows:
   
   1. Supply
   2. Demand
   3. Production
2. Financial flows
3. Information flows

Question 2

Moreover, supply chains are subject to macro-risks:

Answer 2

1. Natural risks
2. Law and Cultural risks

Question 3

These risks can be classified in two ways from the perspective of impact severity and frequency:

Answer 3

1. Operational risks (a.k.a. low-impact, high frequency) → they cause the bullwhip effect
2. Disruption risks (a.k.a. high-impact, low-frequency) → they cause the ripple effect

Question 4

The bullwhip effect:

Answer 4

a phenomenon in supply chain management where small fluctuations in demand at the consumer level can create larger and more amplified variations in demand upstream in the supply chain. This effect can lead to inefficiencies, increased costs, and excess inventory.

Question 5

There are four main factors contributing to the increase in variability (i.e. bullwhip effect):

Answer 5

1. Demand forecasting
2. Lead time
3. Batch ordering
4. Price fluctuations

Question 6

Disruptions have consequences in terms of:

Answer 6

• Loss of productivity
• Decrease in customer service
• Loss of revenue

Question 7

Redundancies serve for two problem areas:

Answer 7

1. Protect SC against perturbation impacts based on certain reserves → Supply chain robustness
2. Amplify the fork variety of SC paths to react quickly and flexibly to changes → Supply chain flexibility (is a property concerning its ability to change itself quickly, structurally and functionally. This is connected with the concept of network adaptation)