To determine: Whether the likelihood of choosing more suppliers increase or decrease when the probability of super-event risk decrease.
Introduction:
Unique-event Risk:
In unique-event risk, the disruption occurs to only one supplier. When such phenomenon occurs, one supplier can be chosen over other suppliers. Selection of more than one supplier is necessary to overcome unique-event risk.
Super-event Risk:
The disruption rate to suppliers is high in super-event risk because all suppliers are affected in super-event risk. Chances for occurrence of super-event risks are very low. However firms must make proactive arrangement to overcome super-event risks.
Want to see the full answer?
Check out a sample textbook solutionChapter 11 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
- Delivery of goods from a supplier is in transit for 10 days. If annual demand is 5200 units, what is the average amount of inventory in transit?arrow_forwardWhat is the bullwhip effect, and why does it occur? How can it be overcome?arrow_forwardHow does lack of supply chain coordination contribute to the Bullwhip Effect?arrow_forward
- Explain Elastic demand?arrow_forwardDescribe what is the bullwhip effect and why does it occurs and how can it be overcome?arrow_forwardCharacterize the following decision as either tactical or strategic: Which tier 1 suppliershould be used for a particular component system?a. Tactical b. Strategicarrow_forward
- Explain why radio frequency identification (RFID) provides increased security opportunities in worldwide transportation and distribution, and how this might improve supply chain efficiency?arrow_forwardReview the strategic implications of supply chains in the context of Crayola. Does Crayola have efficient or responsive supply chains or both? Explain your position.arrow_forwardNorthcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1400 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows: Supplier A- Price of $150 per set, plus packing cost of $3.00 per set. Total inland freight costs for all 1400 units would be $550 per month. Supplier B- Price of $74.00 per set, plus packing cost of $2.00 per set. International transportation costs would total $4000 per month, while total inland freight costs would be $850 per month. Supplier C- Price of $97 per set, plus packing cost of $4 per set. International transportation costs would total $4800 per month, while total inland freight costs would be $1200 per month. The total landed cost per month for Supplier B is __$arrow_forward
- 1.Indicate whether the supply or Demand curve would shift to the right, shift to the left or movement along the demand/supply curve under each of the following instances An announcement by local supermarkets on radios and television channels that more companies and individuals with pick up cars have come on board to offer delivery services of groceries to customers during the rock down period. What would happen to the supply of delivery transport service? The Namibian government decides to stop subsidising the City of Windhoek, public transport division. what would happen to the supply of public transport? The government of Namibia decides to increase the income of all the civil servant by 30% as many demanded the need to buy their own vehicle. what would happen to the demand curve for vehicles?arrow_forwardIn each of the following, name the term defined. Answersare listed at the bottom. A supply chain that must deal with high levels of both supply and demand uncertainty. In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce risk. Used to describe functions related to the flow of material in a supply chain. When a firm works with suppliers to look for opportunities to save money and benefit the environment. Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposing of after its useful life.arrow_forwardEight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in Table. Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.