Answered: As supply chains have become more…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

SLO 4.2. As supply chains have become more global, the risk of supply disruptions has:

Increased because emerging economies lack the business ethics of developed nations
Stayed the same because the issues are similar wherever suppliers are located
Decreased because risk is spread among suppliers all over the world
Increased because of financial and exchange rate fluctuations
Decreased because there are global standards for labor and safety

NEWSLO 4.3. Logistics management:

Looks at the material flow process as a complete system, from initial need for materials to delivery of a finished product or service to the customer
Focuses on minimizing costs and lead times across tiers in the supply chain to the benefit of the final customer
Focuses on long-term supplier relationships and commodity plans with the objectives of identifying opportunities in areas such as cost reductions, new technology advancements, and supply market trends
Ensures that every step in the supply process adds value, that inventories are kept at a minimum level, and that distances and delays between process steps are kept as short as possible
Refers to the integration of supply-related functions to provide effective and efficient materials and services to the organization

Expert Solution

WHY OTHER OPTIONS ARE WRONG

ANSWER:1

"Increased because emerging economies lack the established countries' commercial ethics." This choice is flawed because it assumes that all emerging economies lack corporate ethics, which is an unfair and untrue generalization. Disruptions can also occur everywhere in the world, independent of the moral norms of a particular nation or area.
"Stayed the same" because the problems remain the same no matter where the suppliers are. This choice needs to be revised because the globalization of supply chains has raised the complexity of the issues and the likelihood of dangers. For instance, the legal and regulatory framework, communication and transportation facilities, and linguistic and cultural hurdles can all impact how resilient a supply chain is.
It has decreased since suppliers from throughout the world share the risk. This choice is flawed because, although having a variety of suppliers located throughout the globe might assist in managing hazards, it only sometimes lowers the total risk of interruptions. More suppliers can make working the supply chain more complicated and harder to spot and resolve possible problems.
"Decreased since there are international labour and safety requirements." This choice is flawed because, while international labour and safety regulations might assist in reducing some supply chain risks, they only cover some possible risks, including natural catastrophes, geopolitical instability, and other unanticipated occurrences. Furthermore, not all vendors could adhere to these criteria, which might raise the risk of interruptions even higher.