ME7713 Industrial Operation Management & Resources Simulation Assessment

Summative Assessment On Recovery Strategy For Globalink Electronics

Supply chain management helps to build a strong framework to ensure future stability and sustainable resource management. All demand and production are interconnected to ensure market demand and set the product cost for profitable ratio. Inventory management ensure growth and renue market demands. EOQ and several calculations covers in this assignment as per question requirement. The risk amd operation management identify the possible challenges in project to set mitigation plan and develop planning for future execution and safety.

Question 1: Supply Chain Management Fundamentals

1.(A) SCOR Framework in Action

To investigate the application of the Supply Chain Operations Reference (SCOR) framework in addressing the supply chain challenges encountered by GlobaLink Electronics. The analysis will primarily concentrate on the "Plan" and "Make" components of the framework. Furthermore, specific instances will be provided to illustrate how these issues, namely rare earth mineral shortages, manufacturing constraints, and inventory imbalances, can be mitigated.

A.1: Introduction to the SCOR Model

The SCOR framework comprises five fundamental domains, namely Plan, Source, Make, Deliver, and Return (Helo and Hao, 2019). In the context of these evaluations, the focus will be directed towards the "Plan" along with "Make" aspects.

A.2: The Aspect of Plan

A.2.1: Predicting and Planning Supply and Demand

Problem: Rare earth mineral shortages affecting production

SCOR Application: To develop and apply resilient demand forecasting algorithms by leveraging historical data and doing comprehensive market analysis. Engage in strong collaboration among manufacturers and distributors in order to obtain market insights, hence ensuring the precision of demand projections (Chehbi-Gamoura et al. 2020). The application of SCOR measures is employed to assess the precision of forecasts and subsequently modify plans as deemed necessary.

Example: By precisely predicting demand, GlobaLink has the ability to make necessary adjustments to schedules for manufacturing, maximizing the efficient utilization of scarce rare earth materials.

A.2.2: Planned Precautions and Future Events

Problem: Disruptions in supply caused by geopolitical tensions.

SCOR Application: The implementation of comprehensive risk management techniques, which encompass several aspects such as planning scenarios, is necessary. To enhance supply chain resilience, it is advisable to strategically diversify the supplier base across different areas. Additionally, it is crucial to establish and maintain efficient methods of communication with suppliers to ensure smooth coordination and collaboration (Dutta et al. 2020). It is imperative to consistently evaluate geopolitical risks and develop contingency strategies to effectively mitigate any disruptions.

Example: GlobaLink possesses the ability to promptly mitigate the consequences of supply interruptions by strategically maintaining different vendors in diverse locations and demonstrating resilience for a range of geopolitical circumstances.

A.3: The aspect of Make

A.3.1: Increasing Productivity and Minimizing Waste

Problem: Manufacturing constraints due to limited raw materials.

SCOR Application: The application of principles from lean manufacturing is recommended in order to improve operations. Leverage technological advancements and automation for maximum manufacturing efficiency (Sulaeman and Harsono, 2021). The monitoring of key performance indicators (KPIs) pertaining to manufacturing within the Supply Chain Operations Reference (SCOR) framework is essential for the identification of obstacles and regions that require modification.

Example: The implementation of automation in specific industrial procedures might serve as a means to address the limited availability of raw materials, hence facilitating a steady and uninterrupted production output.

A.3.2: Inventory Management and Balancing

Problem: Inventory imbalances due to production delays and transportation disruptions.

SCOR Application: The implementation of ABC analysis is recommended for the purpose of categorizing commodities according to their demand and then making appropriate adjustments to inventory levels (Riahi et al. 2021). The application of data analysis in real time and the use of SCOR measures are employed to effectively monitor the rates at which inventory turnover occurs. Engage in close collaboration with retailers and distributors to facilitate a seamless flow of products throughout the supply chain.

Example: Through the analysis of data in real time, GlobaLink has the capacity to make adjustments to inventory capacities in order to ensure the availability of high-demand products, thereby mitigating inventory imbalances. [Referred In appendix 1]

1.(B) Sustainable Supply Chain Integration

B.1: Concept of Supply Chain Sustainability

Supply chain sustainability encompasses the incorporation of ecologically, economically, and socially sustainable follows throughout the entirety of the supply chain cycle. The concept involves the assessment of environmental consequences associated with many stages of a product's life cycle, including raw material sourcing, manufacturing methods, shipping, transportation, and final disposal (Park and Li, 2021). Social factors encompass several elements such as equitable treatment of employees, active involvement in the community, and the protection of human rights. The economic factors primarily revolve around the imperative of guaranteeing the fiscal stability and sustainability of enterprises over the entirety of the supply chain.

B.2: Environmental Factors Integrating

Eco-Friendly practices: Companies have the ability to ethically procure raw materials by selecting environmentally friendly, renewable, or recycled products as a means to mitigate the environmental impact they have. Businesses have the ability to collaborate with suppliers who demonstrate a commitment to environmentally sustainable procedures.

Efficient Use of Energy: Manufacturing and transportation should adopt environmentally friendly procedures. Some examples are switching to energy from renewable sources, streamlining production, and employing more eco-friendly modes of transportation.

Recycling and garbage minimization: One effective strategy for reducing waste is to adopt practices that prioritize the reuse of resources, the implementation of recycling initiatives, and the establishment of waste reduction programmes (Kamble et al. 2020). This may entail the reconfiguration of packaging materials with the aim of enhancing their environmental sustainability, as well as the promotion of customer engagement in the practice of product recycling.

Minimizing Carbon Footprint: One potential strategy for mitigating greenhouse gas emissions involves the optimisation of transportation routes, the utilization of fuel-efficient cars, and the allocation of resources towards the development and implementation of technology aimed at minimizing carbon emissions. 

B.3: Integrating Social Considerations

Ethical Employment Practices: It is imperative to establish equitable compensation, secure occupational environments, and uphold adherence to employment rights within the supply chain. The implementation of routine audits and certifications might serve as a means to validate compliance with employment regulations.

Involvement in the Community: One effective approach to fostering connections with local communities is to provide assistance and resources for initiatives related to health care, schooling, and building infrastructure (Kouhizadeh et al. 2021). Developing robust connections with communities can result in societal advantages and foster favorable opinions of a brand.

Inclusion and Diversity: Promote inclusion and equality on the job by encouraging a wide range of people to apply. Inclusive recruiting practices may lead to a more varied and creative supply chain workforce.

B.4: Integrating Economic Considerations

Cooperative Purchasing: It is important to establish a tight collaboration with suppliers in order to optimize operational efficiency, minimize expenses, and augment the overall performance of the supply chain. The establishment of robust partnerships with suppliers has the potential to provide reciprocal economic advantages.

Total Cost of Ownership (TCO): It is advisable to take into account the whole cost of ownership as opposed to only focusing on the initial purchase cost. This encompasses several elements such as expenses related to transportation, maintenance, and disposal. Through the process of analyzing Total Cost of Ownership (TCO), organizations are able to make financially prudent choices.

Sustainable partnership: Develop enduring relationships with vendors and consumers in order to establish sustainable collaborations (Karmaker et al. 2021). Establishing stable partnerships between business entities might result in supply chains that are more predictable and less susceptible to economic hazards.

B.5: Benefits of a Sustainable Supply Chain

• Sustainable supply chains boost the business's image, recruiting socially concerned consumers and investors.
• Through waste reduction, energy efficiency, and operational efficiency, sustainable practices save money.
• Diversifying suppliers and following ethical practices helps reduce supply chain disruption and legal concerns.
• Sustainable practices inspire firms to create eco-friendly goods and services.

Question 2: Inventory Management and Demand Forecasting

2.(A) ABC Analysis in Inventory Management

A.1: ABC Analysis in Inventory Management

The ABC analysis, alternatively referred to as the Pareto Technique as well as the 80/20 rule, is a categorization methodology employed in the field of inventory management for the purpose of classifying objects according to their level of importance and worth (Umry and Singgih, 2019). Segmenting things into three groups, namely A, B, and C, assists businesses in focusing their inventory control activities and effectively allocating resources.

Figure 1: ABC Analysis

(Source: Self-created on MS Word)

High-Valued Items: Classified as A, This particular classification generally encompasses a minority of products that make up a substantial proportion of the overall value of the inventory. These things possess significant worth and typically necessitate diligent supervision and stricter regulation.

Moderate-Valued Items: Classified as B, This particular classification encompasses things that possess a moderate level of worth and make up a modest proportion of the overall value of the inventory. These items hold significance, albeit to a lesser extent than Category A items.

Low-Valued Items: Classified as C, This particular classification encompasses a significant proportion of goods that possess relatively modest individual worth. Nevertheless, when considered as a whole, they make up a relatively lower proportion of the overall value of the inventory. These items are typically more manageable and controllable.

A.2: The utilization of ABC analysis in inventory management

The organization of activities: The implementation of ABC analysis enables businesses to allocate their time and money towards the most crucial topics. Items in Category A receive greater emphasis in regards to inspection, refilling, and overall management due to their high value.

Allocating Assets Most Effectively: Efficient resource allocation can be achieved by companies through the use of tailored methods, utilizing the ABC classification framework (Jayakumaran et al. 2020). For instance, it is possible to allocate additional resources towards improving the ordering and storing processes of Category A items, but Category C items might be subject to less frequent evaluation.

Risk Management: Items falling under Category A are frequently susceptible to supply chain interruptions, market fluctuations, and several other forms of risk. Through effective management practices, organizations have the ability to minimize the potential hazards associated with stock outs or excessive inventory by continuously monitoring and controlling these valuable assets.

Managing Current Assets: The strategic allocation of resources towards high-value goods contributes to the efficient management of working capital (Teunter and Kuipers, 2022.). The implementation of this practice guarantees that the organization possesses the essential financial resources to allocate towards crucial assets, hence avoiding the excessive allocation of resources towards less significant inventory items.

A.3: Example ABC Analysis for Globalink Electronics

Assumptions:

Let consider a compilation of inventory items along with their corresponding annual application value. The calculation of the yearly consumption value involves the multiplication of the unit cost by the annual demand for each individual item.

Examples of Inventory Products:

Item	Unit Cost ($)	Annual Demand	Annual Usage Value ($)
Microprocessors	10,000	200 units	2,000,000
Lithium-ion Batteries	5,000	300 units	1,500,000
OLED Displays	8,000	250 units	2,000,000
Smartphone Casings	500	2,000 units	1,000,000
Memory Chips	800	1,800 units	1,440,000
Packaging Materials	2	50,000 units	100,000
Screws	1	30,000 units	30,000
Total annual usage value	8,070,000

Table 1: Inventory Products for ABC analysis

(Source: Self-created on MS Excel)

A4: Determination of the percentage of the total annual usage value

The Total Annual Usage Value can be calculated by summing the Annual Usage Value for each individual component (Lou?anová and Nosá?ová, 2020).

Total Annual Usage Value =

2,000,000 1,500,000 2,000,000 1,000,000 1,440,000 100,000 30,000 = 8,070,000 dollars

Percentage of Total Annual Usage Value= (Total Annual Usage Value/Annual Usage Value for an Item)×100

A.5: Classifying Items into A, B, and C based on Cumulative Percentage

Item	Annual Usage Value ($)	Percentage of Total Annual Usage Value	Cumulative Percentage	ABC classification
Microprocessors	2,000,000	24.8%	24.8%	A
Lithium-ion Batteries	1,500,000	18.6%	43.37%	B
OLED Displays	2,000,000	24.8%	68.15%	A
Smartphone Casings	1,000,000	12.4%	80.55%	B
Memory Chips	1,440,000	17.8%	98.39%	C
Packaging Materials	100,000	1.2%	99.63%	C
Screws	30,000	0.4%	100.00%	C

Table 2: Classification A, B, and C based on Cumulative Percentage

(Source: Self-created on MS excel)

ABC Classification

Category A (Top 20%)

• Microprocessors
• OLED Displays

Category B (Next 30%)

• Lithium-ion Batteries
• Smartphone Casings

Category C (Bottom 50%)

• Memory Chips
• Packaging Materials
• Screws

2.(B) Economic Order Quantity (EOQ) Model

B.1: Overview of EOQ Model

The Economic Order Quantity (EOQ) model is a popular inventory management tool that finds the best order quantity to save inventory expenditures (Mahata et al. 2020). The EOQ model seeks to minimize inventory holding and ordering expenses.

Assumptions Of EOQ Model

• Constant Demand: The EOQ model depends on the demand rate remaining stable and predictable.
• Constant Ordering Costs: It is presumed that ordering expenses are constant.
• Constant Holding Costs: It is believed that per-unit holding costs remain stable throughout the order cycle.
• No Stockouts: During the lead time, the model anticipates there will be no shortages or stockouts.
• Instantaneous Replenishment: It presupposes that stock levels be automatically restored after an additional order is placed.
• No Quantity Discounts: The model does not include quantity discounts for bigger order quantities.

The equation representing the Economic Order Quantity (EOQ) is as follows:

EOQ = (Bastomi, 2023)

Where

• D defined as annual demand (per quantity)
• S defined as ordering cost per order
• H defined as holding cost per unit per year

Additional Assumption

Ordering cost per order (S) = $500

Holding cost per unit per year (I) = 20% of unit cost

Example Calculation of EOQ

Annual Demand (D)/unit	Unit Cost ($)	Ordering Cost per Order (S)	Holding Cost per Unit per Year (H)	Holding Cost in Percentage (I)	EOQ
200	10,000	500	2,000	20%	10
300	5,000	500	1,000	20%	17.32
250	8,000	500	1,600	20%	12.5
2,000	500	500	100	20%	141.42
1,800	800	500	160	20%	106.07
50,000	2	500	0.4	20%	11180.34
30,000	1	500	0.2	20%	12247.45

Table 3: EOQ of GlobaLink

(Source: Self-created on MS Excel)

Data and assumptions are used to calculate EOQ for every item in table 3. The EOQ is the optimal order quantity that reduces inventory ordering and holding costs for each item.

Working of EOQ Model

• Total cost minimization is the overarching goal of the Economic Order Quantity (EOQ) model, which seeks to determine the optimal order size so as to cut down on inventory carrying costs.
• Trade-off Price Variation Due to Ordering and Storage by keeping costs accumulate when inventory is held for any length of time while ordering expenses are incurred whenever an additional order is placed.
• The goal of the model is to find a suitable medium between these expenditures. Larger orders have lower ordering costs and higher storage fees, respectively (Mahata et al. 2020).
• The EOQ model may be utilized as well to figure out when it's time to place a new order of stock to prevent stockouts, often known as the "reorder point."

When the EOQ Model Might Not Apply

• The EOQ approach may not work well in cases when demand is highly unpredictable.
• Dynamic Pricing If the selling structure changes depending on the purchase amount, the EOQ model may not appropriately reflect costs (Bastomi, 2023).
• The EOQ model might not give you an appropriate answer if your ordering and holding expenses change over time.
• Adjustments to the model may be necessary if order fulfillment lead times tend to fluctuate.
• When demand fluctuates over the year, the EOQ model might require adjustment.

Question 3: Logistics and Transportation Management

Optimization of routes is of utmost importance in the field of supply chain management and logistics management as it contributes significantly to cost savings and the timely completion of deliveries.

3(A): The contribution of route optimization

A.1: Cost Reduction

Effective Fuel Consumption: Through the identification of the most optimal and economical routes, vehicles are able to minimize their time spent on the road, hence resulting in a reduction in both fuel consumption and associated expenditures (Pournader et al. 2020). Efficient routes are characterized by their ability to minimize superfluous diversions and idle time, resulting in significant reductions in fuel consumption.

Vehicle Lifecycle: Optimized routes result in a decrease in the total distance covered, hence reducing the extent of vehicle use and subsequent damage. The reduction in maintenance expenses and the extension of the fleet's lifetime are seen as a result.

Cost management: When drivers maintain optimized routes, they are able to reduce their time spent on the road, hence enabling them to accomplish a greater number of deliveries within a shorter time frame. The aforementioned efficiency leads to a reduction in overtime expenses and an improvement in the productivity of the workforce.

Fine and Penalties: Regulations, such as those limiting travel time or route options, may be met with the use of optimized routes. Avoiding penalties and fines connected with non-compliance helps to save costs.

A.2: Timely Deliveries

Shorter Transit Time: Efficient routes aim to minimize the duration of travel, facilitating the prompt delivery of products to their intended destination. The importance of this matter is especially significant in the context of time-sensitive shipments, including perishable items or products that have narrow delivery timeframes.

Continuous Adjustments: Contemporary route optimizing technologies apply immediate information and GPS monitoring technology to dynamically adjust routes. In the case of unforeseen circumstances such as traffic congestion, the system has the capability to dynamically redirect cars in real-time, therefore circumventing delays and guaranteeing punctual delivery.

Schedule Management: The use of reliable routes facilitates the establishment of a consistent and foreseeable timetable for the transportation of goods, hence enabling enterprises and consumers to engage in more precise planning activities (Trivellas et al. 2020). The increased predictability of outcomes contributes to heightened levels of customer satisfaction and fosters the development of stronger connections with customers.

A.3: How Modern Technology and Data Analytics Optimize Transportation Routes

Algorithm Advances: The use of route optimization software involves the application of advanced algorithms that take into account many factors such as patterns of traffic, roadway conditions, delivery windows, along with vehicle capacity. These algorithms are designed to identify the most optimal routes by taking into consideration various criteria.

Integration of Data in Real Time: The incorporation of contemporaneous information reports, such as GPS along with traffic changes, enables route optimization algorithms to promptly adjust to dynamic circumstances. This measure guarantees the preservation of optimum pathways even in the presence of unforeseen circumstances.

Artificial Intelligence and Predictive Modeling: Algorithmic techniques are used to evaluate past data in order to make predictions about potential traffic trends and delivery durations. Predictive analytics play a crucial role in route optimization by proactively identifying and predicting probable interruptions, hence enabling the adjustment of routes in advance.

Geospatial Modeling: Geospatial analysis tools are used to examine geographic data in order to determine the most favorable routes, taking into account various geographical characteristics, traffic conditions, as well as other spatial elements. This improves the precision and effectiveness of the route.

Question 4: Supply Chain Technologies and Data Analytics

GlobaLink Electronics has the capability to use Supply Chain Technologies and Data Analytics, including AI, Machine Learning, IoT, and Lean principles, in order to establish a robust and streamlined global supply chain. This may be achieved by strategically incorporating these technologies into different operational facets.

4(A): Enhancing demand forecasting

AI and Machine Learning: The use of machine learning techniques that apply previous sales data, industry trends, and external variables is crucial in effectively forecasting demand. The algorithms possess the capability to modify and enhance predictions by using real-time data, allowing GlobaLink to proactively anticipate variations in consumer demand and strategically align production activities.

Internet Of Things: Employ Internet of Things (IoT) sensors throughout various devices to get comprehensive usage statistics. In the context of mobile phones, sensors have the capability to monitor and record use patterns as well as performance indicators (Kumar et al. 2021). The analysis of this data allows the anticipation of client demand for certain product attributes and models, hence allowing the implementation of focused manufacturing and advertising approaches.

4(B): Inventory Management

AI and Machine Learning: The use of machine learning techniques is employed to continuously optimize inventory levels. The algorithm has the capability to analyze several factors such as patterns of demand, vendor performance, along with lead times in order to provide recommendations for ideal reorder times and quantities (Baryannis et al. 2019). Machine learning models provide the capability to anticipate the likelihood of product co-occurrence, hence facilitating bundling and cross-selling tactics.

Figure 2: Terms related to ML

(Source: Ni et al. 2020)

Internet Of Things: Sensors connected via the Internet of Things (IoT) make it possible to monitor stock levels in near-real time. For instance, temperature-sensitive materials and goods may be monitored by sensors to ensure that stock is always kept at the optimal temperature and humidity levels. By combining IoT data using AI algorithms, it may be possible to slow down the rate at which stocks deplete and improve how well warehouses are used.

4(C): Streamline Logistics Operations

AI and Machine Learning: The predictive power of artificial intelligence might be used to optimize shipping as well as transport routes. Predictions of transportation constraints may be made with the use of machine learning algorithms, which can examine both current and past data. This opens up the prospect of using other routes to avoid congestion (Nayal et al. 2022). By using predictive maintenance methods, vehicle breakdowns may be avoided, ensuring on-time deliveries.

Internet Of Things: Vehicles and cargo fitted with Internet of Things (IoT) sensors provide constant tracking and position updates. The sensor has the capability to detect several types of data, including but not limited to position (expressed as latitude and longitude), velocity, and humidity, derived from the immediate environment in which they are situated. The integration of Internet of Things (IoT) data with artificial intelligence (AI) algorithms enables the implementation of proactive decision-making strategies, such as the rerouting of supplies in response to delays or adverse weather conditions.

4(D): Mitigate Risks

AI and Machine Learning: AI-enabled risk management systems are used to analyze large datasets thoroughly in order to identify and evaluate potential dangers (Nayal et al. 2022). In order to foresee and mitigate supply chain disruptions, machine learning models can assess factors including supplier stability, geopolitical difficulties, and market trends. Algorithms based on NLP (natural language processing) may examine material from publications and various online platforms for early warning signs of potential dangers.

Internet Of Things: Internet of Things, or IoT, sensors might be used to keep tabs on the security of facilities and shipments (Kumar et al. 2021). Intruders, tampering, and environmental hazards may all be detected via sensors. Security is improved and losses are reduced when real-time alerts from Internet of Things (IoT) devices are combined with artificial intelligence (AI)-driven analysis.

4(E): Continuous Improvement through Lean Principles

Lean Production: Using Lean principles is essential for finding and getting rid of inefficiencies in the supply chain. Analysis of data, including artificial intelligence (AI) as well as machine learning (ML), has the power to discover ineffectiveness, barriers, and duplication. GlobaLink is able to improve operational efficiency, shorten lead times, eliminate excess inventory, and maximize resource allocation by continuously analyzing information gathered throughout the entire supply chain.

Question 5: Risk Management and Resilience

5.(A)

A.1: Scenario planning

Scenario planning is an organizational planning methodology utilized by organizations to proactively anticipate and effectively prepare for a range of potential future scenarios (Baz, and Ruel, 2021). When confronted with the possibility of supply chain disruptions, GlobaLink Electronics can employ scenario planning as a strategic tool to identify, evaluate, and manage risks.

A.2: Utilization of Scenario Planning

Recognize Critical Uncertainties: Critical supply chain uncertainties should be identified. Geopolitical crises, natural calamities, regulatory changes, and market demand changes are examples (Pournader et al. 2020).

Create Scenario Descriptions: Based on uncertainty, create realistic and different scenarios. These descriptions should depict supply chain-impacting scenarios.

Analyze Supply Chain Effects: Consider how each situation may affect the supply chain. Consider supplier, manufacturing, logistical, and market demand interruptions (Bruin et al. 2020).

Analyze and Rate Potential Risk: Provide probability and effect ratings for each scenario. This prioritizes possibilities by probability and severity.

Make Mitigating Strategy: Develop proactive mitigation methods for each scenario to handle possible issues. These solutions should fit each situation.

A.3: Examples of Scenario Planning

An example table from GlobaLink Electronics' risk register and scenario planning, with an emphasis on supply chain interruptions, is shown below. This approach can be helpful for Globalink as well as the other companies to proactively develop strategies to mitigate risks.

ID	Scenario	Impact	Likelihood	Risk Category	Mitigation Strategies
S1	Rare  Earth Mineral Shortages	High	Moderate to High	Supply Chain	? Expand supplier contacts for essential components. ? Invest in rare earth minerals stockpile.
S2	Manufacturing Constraints	High	High	Production	? Investigate alternate manufacturing materials. ? Long-term contracts with important suppliers should be negotiated.
S3	Logistical Disruptions	High	Moderate to High	Transportation	? Broaden transportation alternatives and destinations. ? Collaborate with logistical partners to plan for the contingency
S4	Global Retail Network Impact	High	Moderate to High	Market Demand	? Communicate closely with merchants on demand projections. ? Use flexible pricing and supply tactics.
S5	Inventory Imbalances	High	Moderate to High	Supply Chain	Use ABC analysis to prioritize inventory. Create inventory policies that are adaptable. Monitor and change inventory levels on a regular basis.

Table 4: Scenario Planning Example

(Source: Self-created on MS Excel)

GlobaLink Electronics can improve its capacity to react proactively to anticipated interruptions in the supply chain by methodically investigating these situations and establishing appropriate mitigation plans.

5.(B)

B.1: Establishment Of Dynamic Levels Of Safety Stocks

The establishment of dynamic levels of safety stocks necessitates a proactive and adaptable strategy to address unforeseen interruptions in the supply chain and unanticipated swings in demand. Presented below is a comprehensive, sequential procedure:

Constant Monitoring: Put in place real-time monitoring tools to keep checks on demand trends, supplier efficiency, and other elements as they evolve.

Risk Assessment: Risk assessment may help to spot possible problems in the supply chain and gauge how they will affect the stock levels.

Quantify Impact and Likelihood: Set numbers on the effects and probabilities of the dangers that have been uncovered. The amount of uncertainty may be prioritized and measured using this method.

Safety Stock Estimation in Real Time: Make use of the determined risk levels to constantly decide the quantity of safety stock to maintain on hand (Bruin et al. 2020). Greater buffer stocks may be necessary in high-risk situations.

Scenario-Specific Adjustments: Adjust the amount of stock kept for contingencies based on the results of a risk analysis. Adjustments to the emergency supply may be necessary for a variety of concerns.

Combining with Preventative Measures: Proactive safety stock planning should include risk mitigation techniques indicated in the risk assessment. These methods may be used to better handle and mitigate the effects of interruptions.

Constant Evaluation and Modification: Adjust the amount of safety stock on a regular basis to account for new knowledge, shifting risks, and other factors.

B.2: How GlobaLink Electronics can use risk assessment data to optimize inventory buffers

GlobaLink Electronics may use the risk assessment table to fine-tune its stock of safety items

Adjusting safety stock and replacement rules might help the business achieve this alignment. They may, for instance, boost their safety stock in the event of a high-risk situation such as Rare Earth Mineral Lacks in order to prevent any disruptions in supply (Ivanov and Dolgui, 2021). GlobaLink offers a dynamic and flexible approach to optimizing buffers for inventory in the face of recognized risks by including mitigation techniques into inventory planning and monitoring the risk landscape on a frequent basis.

Conclusion

The execution of supply chain management concluded strength for project sucess and future stability. The trasnporation and risk management both are inter related for sucessful project management. In the above critical analysis EOQ calculation and several supply chain amd market demand reflects consumer and resoaurces helps to achieve success and prosperity. The transportation and global logistic operation scheduled for cost cut of and reconstruct service plan. The quality of service state excution of alternative plan and introduce new technology helap to secure project and solve the possible risk in project.