Domain: Supply Chain
Question:
"A multinational heavy machinery manufacturer operates a hybrid Just in Time inventory system spanning 8 countries. In the post COVID-19 landscape, they face the following challenges: 
 
 35% increase in buffer stock for critical Personal Protective Equipment (PPE) 
 
 Delays in Radio Frequency Identification (RFID) / Internet of Things (IOT) deployment due to legacy system constraints 
 
 The senior management mandates to reduce inventory carrying costs by 18% within two years while securing Business Continuity certification. 
 
 Using only the evidence provided in the "Grainger report- Supply chain and inventory management trends 2020-2021" analysis and provide recommended solutions to: 
 
 Quantify the trade-off between sustaining pandemic-era safety stock levels and deploying digital twins to counteract the bullwhip effect. 
 
 Formulate a risk adjusted strategy that integrates the Blockchain Expert's principle of "digital asset" with the JIT requirement for "synchronous part sequencing""

Expected points in a correct answer:
State that the analysis uses insights from the Grainger report (2021).
State that post-COVID-19 supply chain challenges have increased buffer stocks.
State that post-COVID-19 supply chain challenges have delayed digital adoption.
Identify that post-COVID-19 supply chain had challenges.
State that the Safety Stock Approach provides an immediate buffer.
State that the report mentions that JIT requires synchronous part sequencing.
Cite CAD files as an example of digital assets.
State that increased buffer stocks and delayed digital adoption raised costs.
State that the report highlights that pandemic-driven safety stock increases raise carrying costs.
State that excessive dependence on safety stock can worsen the bullwhip effect.
State that pandemic-driven safety stock increases help prevent shortages.
State that the Safety Stock Approach has high carrying costs.
State that worsening the bullwhip effect is caused by demand distortions.
State that increased buffer stocks and delayed digital adoption exposed skill gaps.
State that bullwhip risk is lowered by synchronizing supply with real-time data.
State that JIT fails during disruptions without buffers.
State that reducing physical inventory reduces carrying costs.
State that worsening the bullwhip effect leads to excess inventory waste.
State that high carrying costs are due to maintaining a 35% PPE buffer.
State that the Digital Twin Approach lowers bullwhip risk.
State that high bullwhip risk is caused by demand inflation cascading through the supply chain.
State that the Safety Stock Approach has high bullwhip risk.
State that containing the bullwhip effect is achieved via real-time demand signals.
State that reducing physical inventory helps contain the bullwhip effect.
State that converting parts into digital assets enables synchronous sequencing.
State that optionality allows production shifts to nearshore sites during disruptions.
State that low costs are achieved by replacing physical buffers with digital assets.
State that enabling on-demand 3D printing reduces physical inventory needs.
State that the Digital Twin Approach has low costs.
State that the approach follows the recommendation to digitize internal processes first.
State that risk for high-value and critical components is mitigated through blockchain-based IP sharing.
State that synchronous sequencing allows digital twins to validate part specifications before production.
State that the Digital Twin Approach offers long-term optionality.
State that high costs are due to legacy system integration challenges.
State that creating digital IP assets enables on-demand manufacturing at regional hubs.
State that blockchain enables digital assets to be securely shared.
State that secure sharing enables decentralized production.
State that digitizing critical components provides optionality.
State that digital twins are supported by blockchain.
State that digital twins are supported by IP sharing.
State that digital twins enable on-demand 3D printing at the point of use.
State that the Digital Twin Approach incurs high costs.
State that the Safety Stock Approach has low short-term implementation costs.
State that blockchain enables digital assets.
State that risk is mitigated using Grainger's risk-pooling method.
State that the analysis quantifies the trade-off between pandemic-era safety stock and digital twins.
State that the analysis aims to reduce the bullwhip effect.
State that the analysis proposes a risk-adjusted strategy.
State that the risk-adjusted strategy aims to optimize inventory management.
State that the risk-adjusted strategy integrates blockchain-based digital assets with JIT's synchronous part sequencing.
State that the best approach is to phase out non-critical safety stock.
State that an action is to use blockchain to create digital IP assets.
State that an action is to digitize critical components.
State that an action is to prioritize RFID deployment for critical path components.
State that an action is to prioritize IoT deployment for critical path components.
State that phasing out non-critical safety stock is achieved by deploying digital twins for high-value components.
State that digitizing critical components involves converting JIT-dependent parts into blockchain-secured digital assets.
State that for commodity and PPE components the approach focuses on optimizing safety stock.
State that for high-value and critical components the strategy involves using digital assets alongside 3D printing hubs.
State that optimizing safety stock involves reducing the current 35% buffer.
State that an action is to implement API-based middleware to bridge legacy systems.