Create a cascading reaction throughout supply chains

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Reference no: EM133917987

Assignment:

Natural disasters create a cascading reaction throughout supply chains, specifically new equipment schedules. It can disrupt the flow of equipment through the loss of raw materials, production facilities, communication systems and disruption of transportation. Production can decrease significantly depending on the amount of damage and location of suppliers. Inventory is depleted due to increased need as supply reserves are emptied. Demand is increased through panic buying, hoarding behaviors and shifting priorities. Price instability is created by supply-demand imbalance, usually increased prices through inflation. Overall, the effects of disasters on department budgets include shortages of supplies, decreased natural resources (water supply), damage to infrastructure, loss of transportation services, and communication system failures. These effects lead to a decrease in the ability to provide services and a decrease in revenue. (Salam, et al., 2023)

Reference no: EM133917987

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