Jane Doe
SCLM 436
1.2 Article Review Select an article based on supply chain management. Focus on supply chain disruptions that have impacted the supply chain for automobiles or electronic products. Resources contained in the Bellevue University Online Library Database System are highly recommended. After reading through the article, review the article using the following format with the headings indicated in bold below:
1.
Citation:
Whalen, J. (Eds.). (2021). Chip shortage will last beyond 2022 as demand far outsrips supply. 2.
Summary:
Computer chips are in almost everything today from toothbrushes, video game consoles, washing machines and refrigerators. After the COVID pandemic, we are now facing a global chip shortage where there is a huge demand and not enough chips to go around. Industry
analysts believe the shortage could last for another two years as the semiconductor industry is uncharted territory. 3.
Critique:
Following the global viral pandemic with Covid, we are now experiencing “chip-
ageddon”. In a time where technology is the center of almost everything we do, we are now in a chip shortage crisis. Industry experts state that the demand for the products that require chips
will remain high while the supply for these chips will also remain constrained and there is not signs of subsiding. One of the major shortages we have seen is the new game console PlayStation 5. These consoles are selling out before majority of the public even know that retailers are in stock. Additionally, the automobile industry is felt the affects of the chip shortage
as car manufacturers cannot get the chips required to manufacture new cars. Not only are companies across all industries impacted by not being able to get their hands on the supply for their products but the price chips are sold are rising as well due to the shortage for the high-
demand component. It takes time to put changes and capacity in place and the industries are definitely feeling the pressure as companies see bottlenecks in capacity. Many automobile manufacturers sit idle while interventions, work arounds and new supply is developed. Manufacturers are complicating the issue even more by placing orders with multiple factories to
try and get there hands on chips from one of the chip factories. This is complicating chipmakers in understanding where the chips true supply is needed to be allocated. 4.
Application:
Supply and demand go hand in hand. When you throw supply shortages in the mix post and global pandemic it’s a recipe for complete chaos. As soon as the general public gets wind that there is a shortage of any kind any where within a supply chain, the demand for the product or good increases exponentially. Panic buyers rush out to purchase every one they can while supplies remain on the shelves. The panic buying influences others to panic buy as well. Shelves become bare and supply continues to decrease. Take this crisis and apply it to
