1. Give an example for each of the risks in Table 6-3 for a hospital along with its consequence.

Table 6-3 Supply Chain Risks to Be Considered During Network Design Category Risk Drivers Disruptions Natural disaster, war, terrorism Labor disputes Supplier bankruptcy Delays High capacity utilization at supply source Inflexibility of supply source Poor quality or yield at supply source Systems risk Information infrastructure breakdown System integration or extent of systems being networked Forecast risk Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycles, small customer base Information distortion Intellectual property risk Vertical integration of supply chain Global outsourcing and markets Procurement risk Exchange-rate risk Price of inputs Fraction purchased from a single source Industry-wide capacity utilization Receivables risk Number of customers Financial strength of customers Inventory risk Rate of product obsolescence Inventory holding cost Product value Demand and supply uncertainty Capacity risk Cost of capacity Capacity flexibility Source: Adapted from Managing Risk to Avoid Supply Chain Breakdown." Sunil Chopra and Manmohan S. Sodhi, Sloan Management Review (Fall 2004): 5361