Operations management assignment help on: Supply chain globally

Q2a) How would you reduce risk in the auto parts supply chain which has been threatened?Ans2a) Recent Japan Tsunami and Earthquake has caused severe supply chain disruption globally. Multinational companies that rely on Japanese manufacturers for parts and services are facing the shortages that could last up to several months.

Hence, there is a need to identify as well as reduce the various types of risks in the auto parts supply chain which has been threatened. Majorly, most of the auto parts have been imported from the mother country as all the Japanese assembly plants have been shut down (Lambert, 2008).

Due to the devastating state of Japan, Toyota has been suffering a lot in terms of the less amount of production of the cars. Due to fire in the Aisin Seiki, approximately 99% of the brake valves were destroyed which has led to a major halt in the production process of Toyota. The world’s first car maker had to shut down their productions by losing an order of an approximate 70,000 cars (Blanchard, 2007).Q2b) How disruption of manufacturing in Japan has ripple effects globally?

Ans2b) The disruption of manufacturing in Japan has had rippled effects all over the globe. The supply chain process is one of the most complex one. Approximately, 20,000 auto parts completes a car & all the parts were unavailable due to the Tsunami & Earthquake which had affected Japan badly (Mentzer, 2006).

As mentioned above, that a car requires approximately 20,000 parts & when such parts were not available with the company they were unable to export the finished product to the home country & hence the customers need, demands were unable to be fulfilled.

Around 10,000 suppliers compromised due to the havocking effect of the Tsunami & Earthquake. To quote some examples, Honda has been one of the major sufferers due to the earthquake & Tsunami which has hit Japan in the previous months (Lambert, 2008).

Q2c) Why is this an important Issue?Ans2c) This refers to one of the most important issues as the entire Supply Chain process has been at a halt which has also led suppliers to rethink as to from where should they ask for the auto parts in order to accomplish their process of making a car & serving the needs of the people (Mentzer, 2006).

The overall concept of Just-In-Time inventory & lean operations has also led to a serious problem in the major car companies which should be taken into consideration as it would help in maintaining an effective flow of the processes (Blanchard, 2007).

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