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Supplier selection is among the most critical in managing supply chains. Our discussion will guide us in developing tools which monitor the financial health of a supplier. Our text discusses the Z score in Chap 6. What does the Z score do? Please conduct some Internet research and support your comments with a brief overview of supplier bankruptcies in the news. Were there red flags that were not seen before a supplier went out of business?
While supplier risk is often the most concerning, what about demand risk or process risk? Consider examples of demand risk on Table 7.2 and process risks on Table 7.3. Select at least two, but no more than three examples from each and offer your perspectives on ways to mitigate their negative impact.