Multiple Select QuestionSelect all that applyWhat are two things companies should do to manage the risks associated with global operations?Multiple select question.Encourage procurement employees to work together to find suppliers at a reasonable costCreate large storehouses of goodsLimit inventory on hand until demand is evidencedMake sure supply chains are diverse
Question
Multiple Select QuestionSelect all that applyWhat are two things companies should do to manage the risks associated with global operations?Multiple select question.Encourage procurement employees to work together to find suppliers at a reasonable costCreate large storehouses of goodsLimit inventory on hand until demand is evidencedMake sure supply chains are diverse
Solution
Companies should do the following to manage the risks associated with global operations:
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Encourage procurement employees to work together to find suppliers at a reasonable cost: This can help the company to get the best deals and also to have a backup plan in case a supplier fails to deliver.
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Make sure supply chains are diverse: This can help to reduce the risk of supply chain disruption. If one supplier or country faces a problem, the company can still get its supplies from other sources.
Creating large storehouses of goods and limiting inventory on hand until demand is evidenced are not necessarily effective strategies for managing risks associated with global operations. The first can lead to high storage costs and potential waste if goods are not sold, while the second can lead to missed sales opportunities if demand suddenly increases.
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