Reference no: EM131440229

Your company produces medical devices and purchases plastic molded fittings from a company in Beijing, China. It is rumored the Chinese supplier is being acquired by a plastics company in Saratov, Russia.  If this acquisition is completed, the fabrication of the plastic fittings will be relocated to Saratov. It is expected to take six months to transition production to the new location once the agreement is signed. 

The current situation with the Chinese supplier has not been good. It is behind on deliveries due to shortage of plastic resin from its supplier as well as transportation delays coming into the U.S. due to backups at the West Coast sea ports. This has caused back orders to your customers.

While you are working to close the gap in current supply, you know this change in supplier location will only create additional risk to your supply chain.

Choose one of the following to complete this assignment:

Option 1: Paper

Write a 700- to 1,050-word paper that defines the methods you will use to manage risk associated with an already tight supply line and a relocation of a key supplier to Russia.  Be specific in identifying potential risks and detail your recommendations to mitigate these risks. Include actions to manage information technology solutions that may support risk mitigation.