A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?
Correct Answer: C
To minimize future supply chain interruptions from a second-tier supplier, the firm should map the supplier's supply chain to identify risks and opportunities. This involves:
* Supply Chain Mapping: Creating a visual representation of the supplier's supply chain helps in understanding the flow of materials, components, and information.
* Identifying Risks: By mapping the supply chain, the firm can identify potential points of failure, such as single-source dependencies, geographic risks, or capacity constraints.
* Assessing Opportunities: Mapping also reveals opportunities for improvement, such as alternative suppliers, process enhancements, or inventory optimization.
* Proactive Risk Management: With a comprehensive view of the supply chain, the firm can develop risk mitigation strategies, such as diversifying suppliers, increasing safety stock, or enhancing communication channels.
References
* "The Supply Chain Risk Management Guide" by James B. Rice Jr. and Craig A. Zsidisin
* APICS, "Risk Management in the Supply Chain"