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1. What mathematical equation most closely defines supply chain risk?
Supply chain risk = Dollars spent on prevention * Event probability
Supply chain risk = Supply risk + Demand risk + Process risk + Control risk - Environmental risk
Supply chain risk = sqrt (Probability of an event * Liklihood of an event) ^ Chances of an event * 2
Supply chain risk = Probability of an event * Impact of that event
2. Which of the following is NOT TRUE about transnational strategy?
Cost efficient while being locally responsive
Leverages low-cost advantages
Engages in global learning and diffusion of innovations
Organizationally complex
Difficult to implement
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