Discussion and Response

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Chapter 11 is titled “Risk” and includes the following topics:

  • Definition of risk
  • Risk management principles
  • Risk identification
  • Risk assessment
  • Risk control
  • Contingency plans

Wall Street Journal article, “Clothes Shoppers Are About to Realize Just How Messed Up Shipping Has Become,” Link: https://www.wsj.com/articles/clothes-shoppers-are-about-to-realize-just-how-messed-up-shipping-has-become-11617960605 (Links to an external site.)

Wall Street Journal article, “From Beer to Flat-Pack Furniture, Suez Blockage Offers a Global Trade Snapshot,” Link: https://www.wsj.com/articles/from-beer-to-flat-pack-furniture-suez-blockage-offers-a-global-trade-snapshot-11617739499?mod=searchresults_pos6&page=1 (Links to an external site.)

Please read Chapter 11 and the Wall Street Journal articles before answering the questions below.

Questions: ———————————————————————————

  1. We have experienced an enormous impact on the economy from the Covid-19 pandemic in the United States. Risk identification is an essential part of developing strategies to manage and mitigate supply chain risks in the future. Using the Risk Assessment model in Table 11.1, please identify the two most likely supply chain risks for retailers in the United States over the next five years. Discuss the probability and consequences of each potential supply chain risk that you have identified.
  2. While customers may be frustrated with product delays, retailers have gained pricing power. Will retailers be able to maintain higher margins over the next two years? Why or why not?
  3. Higher margins have allowed retailers to manage increasing shipping charges. What would be the impact of another global disruption in supply chains if another container ship disrupts the Suez Canal?
  4. Please provide an insightful question about supply chain risk management.
  5. Please respond to one of the insightful questions posted by another student.
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