1. Consumers are often advised to stock up on necessities in advance of a major
ID: 363672 • Letter: 1
Question
1. Consumers are often advised to stock up on necessities in advance of a major storm. Would this kind of strategy work for businesses? Why or why not?
2. One writer suggests that disaster preparedness includes understanding the risks faced by your supplier’s suppliers. Do you agree? Why or why not?
Superstorm Sandy Disrupts Global Supply Chain 475 Superstorm Sandy surged through New York mainrefineies du to foodin her winds of more than 80 miles an hour and aornment fials and business manages aleagre that main r power and New Jersey several years ago, bringing thetr pumps an ou f fuel n ne up culdreach them tor 14-foot flood surge. Airports closed, subways floded, better preparation can prevent some of these los their pumps ran out of fuel, no new supplies could reach them for Once the stations that could days. and communications were disrupted. In addition to more ties should another superstorm hit the area. One consultant sug- power than 100 deaths, thousands of homes and businesses were da or destroyed by flood, fire, and wind. In the aftermath, bridges and production schedules and deliveries in light of those risks, and seek roads were closed, gasoline had to be rationed, and crews from as multiple suppliers-ones that are not too far away. far away as Canada arrived to repair power lines, an effort that took weeks. The storm is estimated to have cost more than $60 billion QUESTIONS FOR CRITICAL THINKING in property damage and lost business. gests that businesses learn the risks their suppliers face, plan their While many soon returned to normal routines, the storm's full effects across 15 states were deep and long lasting. A major rea- son was the disruption of the area's supply chains. New York's and New Jersey's international shipping harbors and three major air. 2. One writer suggests that disaster preparedness includes ports were closed for two to three days, and road traffic was nearly halted for up to several days. Some cargoes were quickly diverted but shipping volume in the area is so heavy--second only to that Sources Sabina Zawadasi and Anna Loue Sussman Arbys Sa Mn of Long Beach/Los Angeles-that disruptions were widespread Incoming and outgoing shipments were delayed, with ripple effects ofSupply Chain VWiherablity' National ostaccesed March 12,204 hpi hat went worldwide. Some businesses were hurt by these delays as the critical holiday season approached; some never reopened. Chs lle ritt podvoe a dyon-alun on-se- Perhaps most frustrating to many consumers was the unex Consumers are often advised to stock up on necessities in advance of a major storm. Would this kind of strategy work for businesses? Why or why not? 1. understanding the risks faced by your supplier's suppliers. Do you agree? Why or why not? 2014, www Hurricane Sandy a Harsh Reminde accessed March 17,201 from at icane pected shortage of gasoline left in Sandy's wake, resulting power outages at gas stations and the shut down of the area's twoExplanation / Answer
1. Just as consumers stock up for the rainy day in the same way the business also stock up but this strategy does not succeed each and everytime. Although in the events of storm it is advisable to stock up to maintain the supply when the competitors are not able to meet the same. This gives the businesses an opportunity to earn more and make even more profits. Along with that in the need of hour this helps the consumers as well. Although business have to be calculative about the risk of holding the stock.
2. Yes it is true that disaster preparedness includes understanding the risks faced by the supplier's supplier but they plan their production schedules and delivered accordingly. In such case the supplier shall also seek another supplier to maintain supply to the consumers. The risk of each supplier must be evaluated in order to get the supplies in time and as per need.
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