Demand Side Risks

For orrr purpose, we will divide supply chain risk soimces into five distinet classes Demand side risk, supply side risk, regulatory, legal andbirreaucratic risk, infrastmctrrre risk, and catastrophic risk. While the first two risk sorrrce categories deal with supply-demand coordination risks that are internal to the snpply chain, the latter three focus on risk sources that are not necessarily internal to the chain. 

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As the MEs may not to be competitive in producing functional products, most of the needs would be satisfied through imports. We call this the trade driven supply chain, shown in Fig. 7.2. For example in the apparel industry, products that are not fashion-sensitive are produced in the EE, usually in Asia, and imported in large volumes by retailers such as Wal-Mart. Manufacturers in EE obtain large production contracts with lead times of several months and therefore their exposure to demand side risk is negligible. However, they are exposed to a considerable supply side risk, discussed later. 

We use late product differentiation to mitigate demand side risks. We hold additional inventory and capacity buffers to mitigate the 2.71 1.20... 

Nagumey A, Cruz J, Dong J, Zhang D (2005) Supply chain networks, electronic commerce, and supply side and demand side risk. European Journal of Operational Research 164(1) 120-142. 

Once all risks have been assessed, a supply chain risk portfolio as well as a table ranking all risks according to their overall risk prioritisation index are eomposed (see Fig. 13.6 for the portfolio). Analysing the entire supply chain risk profile is an important first step for deriving mitigation measures. For example, the analysis can reveal that most of the risks are either within the internal or, alternatively, within the external supply chain processes. Similarly, a supply chain risk profile can be characterized by a predominance of risks on the supply side or, alternatively, on the demand side. Agreed interpretations of the supply chain risk profile are an important means of the SMEs commitment to ehanges. 

The numbers reveal that demand side and supply side risk sources represent the dominant and most prevalent supply chain risks. In particular, the issues of volatile customer demand, information distortion in the supply chain, price fluctuation on the supply markets, as well as quality problems with sourced material have significantly affected the surveyed firms during the last 3 years. 

The data indicates that demand side and supply side issues are the most dominant risks for the snrveyed firms. Primarily, this bolsters the notion that supply and demand coordination is the central issue in supply chain management (Kleindorfer and van Wassenhove 2004). 

In a supply chain exceptions can occur at various nodes - on the supply side, demand side, during transport or in storage - and due to a variety of different causes. There could be failures of power and communications or employee strikes. There is also a risk of breach of trust by partners, by outside elements. 

Nonetheless, routine use of background infusion has been questioned, especially when opioids are administered systemically (intravenously) by PCA. It appears that background infusions may not provide any additional analgesic benefits in most patients, but they can lead to an increased risk of side effects such as respiratory depression because patients ultimately receive a larger total amount of opioid (i.e., the background infusion plus the demand doses).8,34 Hence, background infusion rates have been discouraged for... 

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