Supply Chain Exam

Part A

Question 1 (a):Volatility in the supply chain volatility model describes the lack of balance between supply and demand that causes an unaccounted-for variation in upstream and downstream materials in their processing, manufacture, production, and supply to consumers. Thus, the management of volatility in any supply chain is critical for its success. To better manage it, the three tiers of change drivers are used to define the variables affecting volatility in a supply chain using a case study of the agricultural and food industry. For all the three tiers, supply chains are vulnerable to external and internal factors, which affect them in two major ways. These include the overproduction of products such as foods when manufacturing and supply are greater than the demand, the lack of customer satisfaction, and eventual loss of revenue when customer demand is higher than product supply (Nitsche and Straube, 2020).In this case, the three tiers include the local supply chain volatility, the industry volatility, and the global focus macro-factor volatility.