ÁREA DE CIENCIAS QUIMICAS, EXACTAS Y TECNOLOGICAS.

Universidad del Noreste

Área de Universidad

Ing. Industrial y de sistemas

Logística Industrial

The Great Supply Chain Disruption

Bloque 1 Parcial 1

Grado 8 Grupo “A”

Profesor (a): Luis Roberto Alcázar Willis.

Alumno (a): Alexandra Aguilar Ponce.

Fecha de entrega: 29/01/2022.

 The Great Supply Chain Disruption

This podcast is mostly about everything we've been through because of the
pandemic. And this problem starts in China, where huge cases of covid-19 are
released and chaos ensues, mostly affecting supply chains, among other factors
derived from them. In economic terms, the pandemic has disrupted almost every
aspect of global supply chains, namely the normally invisible production,
transportation and logistics routes that move products from production site, mining
or agriculture to destination. At the end of the chain, there is another company or
consumer who pays for the final product. Scarcity has driven up the price of many
things.

The pandemic has caused extreme volatility in supply and demand, changing faster
than supply chains can adapt. But this is due to decades of extremely low inventory
that companies hold to reduce costs. Stock and supply chain disruptions are
significant and common, but can be temporary. Below, we describe the disruptions,
how the supply chain has adapted to past disruptions, and how management is
working to address short- and long-term supply chain issues.

Inventory-to-sales ratios in general and in the retail sector reached historic lows in
March, at the beginning of the pandemic. These ratios measure the number of
current selling days that companies and retailers can maintain with current inventory.
When the pandemic hit, companies had billions of dollars in inventory left over,
causing inventory-to-sales ratios to soar for a short period before companies
liquidated that inventory. But as the economy recovers and demand picks up,
companies have yet to bring inventories back to pre-pandemic levels, resulting in
lower inventory-to-sales ratios.

While the nature of these stocks across the economy is unusual, the history of supply
in specific sectors can provide insight into how inventory is managed over time. In
the past, many industries have been surprised by strong demand and surprised by
declining inventories of some products.