Reading$/$case: Simchi$-$Levi, D$.,$ Schmidt, W$.,$ Wei, Y$.,$ Zhang, P$.$Y$.,$ Combs, K$.,$ Ge$,$ Y$.,$

Gusikhin, O$.,$ Sanders, M$.$ and Zhang, D$.,2015.$ Identifying risks and mitigating disruptions in

the automotive supply chain. Interfaces, $45(5),$ pp$\mathrm{.}375-390.$

Questions

Q$1.$

The assigned reading$/$article by Simchi$-$Levi et al$.(2015)$ introduces time$-$to$-$recover $($TTR$)$

and time$-$to$-$survive $($TTS$)$ risk exposure models. TTR was also discussed during Tutorial

Session $9($refer to Simchi$-$Levi et al$.(2014),$ available on Canvas under Module $9\mathrm{.}4$ Tutorial

Activities$).$ Based on the discussion of these articles:

a$)$ Differentiate between TTR and TTS and outline the circumstances when each of them

is considered most appropriate for use. $(4$ mark$)$

b$)$ Explain how Ford Motor Company utilised these models across various strategic,

tactical and operational levels for risk analysis, procurement, and management teams.

$(5$ mark$)$

Q$2.$

Simchi$-$Levi et al$.(2015)$ suggest that developing strategies for mitigating risk exposure is most

challenging for suppliers with low total spending but high$-$performance impact. They also

outline several strategies for managing these suppliers' risk exposures.

a$)$ Discuss and justify which of these strategies $($mentioned in the article$)$ is the most cost$-$

effective $($i$.$e$.,$ for a given cost, the strategy has the greatest effect$)$ and which is least

cost$-$effective for large enterprises like Ford Motor Company. $(4$ mark$)$

b$)$ Discuss and justify which of these strategies is most feasible for small firms. $(5$ mark$)$

Q$3.$

$($a$)$ Examine how the system architecture $($re: Figure $7$ on page $384$ of $($Simchi$-$Levi et al$.$

$2015)$ facilitated the implementation of the risk exposure model at Ford Motor

Company. $(4$ mark$)$

$($b$)$ Drawing on the experiences of the Ford Motor Company presented in Simchi$-$Levi et

al$.(2015),$ discuss how technologies can support a system architecture in implementing

the risk exposure model. $(5$ mark$)$