Operations and supply Chain Management Managing Risks Posed by Remote Suppliers

Operations and supply Chain Management Managing Risks Posed by Remote Suppliers Introduction Operations and supply chain management has become an even more complex affair, given the nature of globalization and the meeting of international markets (Miller 2002). There have been major benefits for suppliers in finding new markets for their goods, producers because of getting cheaper raw materials and cheaper labor, and for the consumer because of the corresponding drop in market prices of the finished goods (Boyer Verner 2009) .Advertising We will write a custom research paper sample on Operations and supply Chain Management: Managing Risks Posed by Remote Suppliers specifically for you for only $16.05 $11/page Learn More However, with the increasing complexity in supply chains, the issues of managing production have also become more difficult to control. The major concerns when working with a supply chain are risk and planning (Jacobs Chase 2010). Research Opportunities and Key Issues in Managing Risks Posed by Remote Suppliers A resea rch opportunity that would be relevant to operations and supply chain risks management is how diversifying remote sources and suppliers can work to help a company in minimizing its risk, and how different systems can be evolved that are suitable to handling different risk factors. This is because in different areas, and different social, political climes, there are factors that pose more risk than others. More and more, companies depend on third parties to provide the materials for them to build their products .The suppliers are at times continents removed (Ritchie Brindley 2007). A company, therefore, can do very little to control risk factors that might impact the supplier despite the fact that these factors can devastate the company’s production (Sheriff Rice 2005). One of the key issues in OSM risk management, is balancing risk with profitability. There might be high profit potential in a certain area, but it might come with high risk, for example manufacturing in a war -torn country. Labor might be cheap, and resources available locally, but the risk of losing the factory are also high. The debate is always whether to be cautious or to take the risk. Another key issue is quality management in terms of supply. Since the company might be several times removed from the source, in terms of distance and the number of parties who handle the product, it might be difficult to ensure high quality materials being used in the making of end products. Using a single or fewer suppliers makes it easier to monitor quality control. On the other hand, it means that in the case of a delay or other interruption of the supply chain, then production is severely interfered with. There are myriad factors that pose risks, such as natural disasters, the supplier going bankrupt, labor disputes in the supplier’s firm or country that might halt operations, war and civic unrest among others (Jacobs Chase 2010). All these factors are beyond the control of the company.Ad vertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More A company can counterbalance risk by opting to diversify on the number of remote providers instead of having a single-source policy (Cox 1999a). There are drawbacks to both options with the largest drawback of the former being increased difficulty in quality control (Cox 1999b). On the other hand working with a single-source policy can bring the company’s activities to a standstill because there is literally no back-up in case of delays in the supply chain (Chopra and Sodhi 2004). An example of two companies who were faced with the same problem with different end results as illustrated by Chopra and Sodhi (2004), is the case of Nokia Corporation and Telefon AB L.M. Ericsson, both of whom use a Philips factory based in New Mexico. When a freak accident burned the factory to the ground, Nokia, who diversify their remote sourcing, salvaged their production by moving to other Philips plants. On the other hand Ericsson who work with a single sourcing policy incurred a 400 million dollar loss and a disruption in production whose impact was felt for months. Conclusion In conclusion it can be said that supply chains are growing more complex by the day as interdependence amongst countries all over the globe grows. This means that more and more companies rely on remotely located suppliers who face risk factors that the initial company cannot control. It is therefore important that companies with remote suppliers look for ways in which they can minimize risk in disruption of production in the face of these risks. A sound practice would be to diversify in remote sourcing so that the risk is spread. However, this has to be balanced with costs and maintaining quality standards. Companies have to find ways in which to adjust to the changes in supply management so as to reap the full benefits of market inter-con nectivity (SCMI 2010, SDC 2010). References Boyer, K. K. Verma, R. (2009). Operations and Supply Chain management for the 21st Century. New York, NY: Cengage Learning. Chopra, S. Sodhi, M. (2004). Managing risk to avoid supply-chain breakdown. MIT Sloan Management Review. Web.Advertising We will write a custom research paper sample on Operations and supply Chain Management: Managing Risks Posed by Remote Suppliers specifically for you for only $16.05 $11/page Learn More Cox, A. (1999a). Power, value and supply chain management. Supply Chain Management: An International Journal, 4 (4)pp.167 – 175. Cox, A. (1999b). A research agenda for supply chain and business management thinking. Supply Chain Management: An International Journal, 4 (4)pp. 209 – 212 Jacobs, F. R. Chase, R. B. (2010). Operations and Supply Chain Management. 2nd edition. New York, NY: McGraw Hill. New, S. J. (1997) The scope of supply chain management research. Supply Chai n Management: An International Journal, 2 (1) pp. 15 – 22. Miller, T. C. (2002). Hierarchal Operations and Supply Chain Planning. New York, NY: Springer Publishing. Ritchie, B. Brindley, C. (2007). An emergent framework for supply chain risk management and performance measurement. The Journal of the Operational Research Society 58 (11) pp. 1398-1411. Sheffi, Y. Rice, J. B. (2005). A supply chain view of the resilient enterprise. MIT Sloan Management Review. Web.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Supply Chain Management Institute (SCMI) (2010). Supply Chain Management Institute. Web. Supply and Demand Chain (2010). Case Studies. Web. Vandenbosch, M. Sapp, S. (2010). ‘Keep your suppliers honest’. Wall Street Journal. Web.

Simple Random Samples From a Table of Random Numbers

Simple Random Samples From a Table of Random Numbers There are a variety of different types of sampling techniques. Of all statistical samples, the simple random sample is indeed the gold standard. In this article, we will see how to use a table of random digits to construct a simple random sample. A simple random sample is characterized by two properties, which we state below: Every individual in the population is equally likely to be chosen for the sampleEvery set of size n is equally likely of being chosen. Simple random samples are important for a number of reasons.  This type of sample guards against bias.  The use of a simple random sample also allows us to apply results from probability, such as the central limit theorem, to our sample. Simple random samples are so necessary that it is important to have a process to obtain such a sample.  We must have a reliable way to produce randomness. While computers will generate so-called  random numbers, these are actually pseudorandom. These pseudorandom numbers are not truly random because hiding in the background, a deterministic process was used to produce the pseudorandom number. Good tables of random digits are the result of random physical processes. The following example goes through a detailed sample calculation. By reading through this example we can see how to construct a simple random sample with the use of a table of random digits. Statement of Problem Suppose that we have a population of 86 college students and want to form a simple random sample of size eleven to survey about some issues on campus. We begin by assigning numbers to each of our students. Since there is a total of 86 students, and 86 is a two digit number, every individual in the population is assigned a two digit number beginning 01, 02, 03, . . . 83, 84, 85. Use of the Table We will use a table of random numbers to determine which of the 85 students should be chosen in our sample. We blindly start at any place in our table and write the random digits in groups of two. Beginning at the fifth digit of the first line we have: 23 44 92 72 75 19 82 88 29 39 81 82 88 The first eleven numbers that are in the range from 01 to 85 are selected from the list. The numbers below that are in bold print correspond to this: 23 44 92 72 75 19 82 88 29 39 81 82 88 At this point, there are a few things to note about this particular example of the process of selecting a simple random sample. The number 92 was omitted because this number is greater than the total number of students in our population. We omit the final two numbers in the list, 82 and 88. This is because we have already included these two numbers in our sample. We only have ten individuals in our sample. To obtain another subject it is necessary to continue to the next row of the table. This line begins: 29 39 81 82 86 04 The numbers 29, 39, 81 and 82 have already been included in our sample. So we see that the first two-digit number that fits in our range and does not repeat a number that has already been selected for the sample is 86. Conclusion of the Problem The final step is to contact students who have been identified with the following numbers: 23, 44, 72, 75, 19, 82, 88, 29, 39, 81, 86 A well-constructed survey can be administered to this group of students and the results tabulated.