K1567 Supply Chain

1 Supply Chain Name Institution Affiliation Course Name Date
2 Part 1 Why is it important to consider uncertainty when evaluating supply chain design decisions? Currently, supply chain design has become a vital strategic activity. Business globalization has caused an increased demand for both products and services. On the other hand, technological advancements have made it easier for firms to source goods worldwide. As a result, that has been a fragmentation of supply chains, with different parts of the system located in different parts of the world (Tseng et al., 2018). Today, most companies operate in a highly competitive and globalized environment. To succeed, they must carefully develop and manage their supply chain networks. However, there has been a significant challenge that acts as a barrier to effective supply chains. This challenge is well-known to be uncertainty. It can result from many sources, such as supplier delivery times, production capacity, raw materials quality, and customer demand. Given the significant contribution of the supply chain toward the success of a business, it is important to consider uncertainties when developing or evaluating supply chains. Managers or decision-makers must consider the likelihood of uncertainties and variability of the supply chain inputs and outputs of the intended supply chain design or operation. Understanding possible disruptions and integrating flexibility into the supply chain can allow organizations to better prepare for unexpected events (Tseng et al., 2018). Also, understanding uncertainties can assist in optimizing costs and service levels. In addition, by being aware of factors leading to costs and service variability, businesses can determine trade-offs that balance cost efficiency with resilience and flexibility.
3 What are the major financial uncertainties faced by electronic components manufacturer s deciding whether to build a plant in Thailand or the United States? The major financial sources of financial uncertainties are the fluctuations of currencies and the price of products that differ from country to country. Starting with the fluctuation of currency, production costs may sometimes become extremely high, causing a reduction in profits. This may be caused by the increased cost of labor or other expenses such as wages and salaries (Arani & Torabi, 2018). On the other hand, price fluctuations may be caused by the entry of cheap substitutes produced by other countries. For instance, China is well-known for offering products at extremely low prices. Another major source of the uncertainties is the changing laws regarding trade that occur in developing countries. Governments usually change laws with an aim of protecting infant industries. As a result, foreign companies based in Thailand usually experience high tariffs and quotas. For these reasons, building a plant in Thailand or the United States may become insignificant. What is the optimal location for the Super Assembly Center? The Super Assembly Center's optimal location is on an X-Y grid 550.615, 808.311 X 550.615 Y 808.311 Total Cost 1358.92 6
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