The globalization of a supply chain typically increases uncertainty and:

The globalization of a supply chain typically increases uncertainty and:
A . production lead time.
B . local competition.
C . documentation complexity.
D . product standardization.

View Answer

Answer: A

Explanation:

The globalization of a supply chain typically increases uncertainty and production lead time. When a supply chain becomes global, it involves longer distances, multiple transportation modes, and more complex logistics operations, all of which contribute to longer lead times. Additionally, global supply chains face uncertainties such as customs delays, geopolitical issues, variability in supplier performance, and risks of natural disasters, which further exacerbate production lead times.

Local competition might increase due to globalization, but it is not directly related to the uncertainties in the supply chain.

Documentation complexity increases with globalization but is a part of the logistical complexities rather than the core uncertainty affecting production lead times.

Product standardization is not a consequence of increased uncertainty but rather a strategy used to

manage complexity.

Reference: Christopher, M. (2011). "Logistics & Supply Chain Management."

Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."