How do import duties and exchange rates affect the location decision in a supply chain?

How do import duties and exchange rates affect the location decision in a supply chain?

05: Import duties & exchange rates affect the location decision of a facility (or a sourcing decision on a supplier) in a supply chain List 2 reasons for including a foreign location in the supply chain List 2 reasons why a foreign location should be avoided

06: What are the main reasons why offshoring fails? What are the risks & how are they mitigated? What are the major opportunities & how are they captured?

07: The Sourcing process has deliverables that include Commodity Profiles, Industry Profiles, TCO (Total Cost of Ownership) Elements, Porter’s 5 Forces Model, Selection Criteria, Willing & Able scatter plots & Negotiation Grids Briefly explain the purpose / reason behind each one of these

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08: What are the 3 macro processes that rest on the TMF (Transactional Management Foundation) & what do they aim to accomplish? Briefly explain the types of information generated by these 3 macro processes (& how the information is used)

Expert Writer Answer

Import duties and exchange rates affect the location decision in a supply chain because both items are costs that can decide the efficiency of the supply chain. Import duties can be tariffs that are charged to the company to do business within a country or region. If a country has high tariffs, then companies either focus on serving a local market or opening a warehouse within the country. Both solutions affect the supply chain strategic planning. However, some countries also have tax incentives or free trade zones, which are also important to note when deciding on a location because of the benefits that could come from trading within another country or expanding business into a foreign market. Exchange rate affect the location decision of the supply chain because the fluctuations within the exchange rates have a significant impact on the profits within the supply chain. Depending on the exchange rate companies can decide if it would be more beneficial to have warehouses overseas or in-state.

How does a rise in transportation costs affect global supply chain networks?

Expert Writer Answer

Transportation costs affect global supply chain networks because the movement of
products is crucial to the efficiency of the supply chain. If a firm is unable to maintain an efficient and effective means of transporting products throughout the supply chain the entire chain will collapse. Transportation, inventory, and facility costs all make up the

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