Lecture 4

Question 1

List the supply trends and there consequences

Answer 1

JIT and Lean: efficiency
Reducing costs: globalisation of supply chain
Economies of Scale: lower cost
Outsourcing: loss of control of SC
Consolidation: increased potential of supply failure

Question 2

Whats Risk?

Answer 2

a measure of the range of possible outcomes from a single totally rational decision and their values, in terms of upside gains and downside losses

Question 3

What is supply chain vulnerability?

Answer 3

exposure to serious disturbance, arising from risks within the SC as well as external risks

Question 4

What is Robust SCM?

Answer 4

manage regular fluctuations in demand efficiently under normal circumstances regardless of the occurrence of major disruption

Does not make a resilient supply chain

Question 5

What is Resilience?

Answer 5

the ability of a system to return to its original state after being disturbed

Question 6

What is robust resilience?

Answer 6

will ride out the fluctuation in the supply chain and revert to normality without the customer being aware of there having been an issue

Question 7

What are the risk mitigating strategies in SC?

Answer 7

Avoidance: dropping specific products etc
Control: vertical integration etc
Cooperation: joint efforts to improve SC visibility and understanding
Flexibility: postponement, multiple source

Question 8

What is objective risk?

Answer 8

Determined by experts by applying quantitative scientific means

Question 9

What is perceived risk?

Answer 9

The imprecise and unreliable perceptions of people