Networking assignment.docx - NURUL IZATTI BINTI RUSMAN...

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NURUL IZATTI BINTI RUSMAN B061610343 2BTEC 1 Identify factors that need to be included in total cost when making global sourcing decisions. Besides unit cost,total cost, should include the impact of global sourcing on freight, inventories, lead time, quality, on-time delivery, minimum order quantity, working capital and stockouts. Other factors to be considered include the impact on supply chain visibility, order communication, invoicing errors, and the need for currency hedging. 2 Define uncertainties that are particularly relevant when designing global supply chains. The performance of global supply chain is affected by uncertainty in a number of input factors such as demand, price, exchange rates, and other economic factors. These uncertainties and any flexibility in the supply chainnetwork must be taken into account when evaluating alternative designs of a supply chain. 3 Explain different strategies that may be used to mitigate risk in global supply chains.
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