
132 • Supply Chain Risk Management: An Emerging Discipline
TABLE7.2
Demand Risks
Demand Risk Cause Horizons Traditional Remedies
Forecast error Seasonal issues, lead
times, poor information,
inadequate systems,
poor communications,
inadequate skills
Both Statistically derived safety
stock, buer stock points,
excess inventory
throughout supply chain
Time delays Customer changes,
systems issues, product
issues
Both Rescheduling, price
concessions
Outbound
transit times
Carrier issues, acts of
God, customers’ issues
Both Carrier discussions,
customs calls, freight
forwarding follow- ups
Customer
pricing
Poor communication,
inadequate contract
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