Supply Chain Risk & Resilience: Safety Stock, Dual Sourcing & Disruption Scenarios

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Score Ridgeline E-Bikes' ten supply chain risks, rate them High / Medium / Low with thresholds kept in cells, count the High risks and colour the scores as a heat map.
• Measure how concentrated Ridgeline's spend is in six categories with the Herfindahl-Hirschman Index and the top supplier's share, flag the categories that break the policy and translate an HHI into an equivalent number of suppliers.
• Compare how long each node of Ridgeline's network needs to recover with how long the network can survive without it, and find where a disruption would cost the most.
• Size the safety stock of five e-bike parts with the combined formula for demand and lead-time variability and find out which of the two drives the buffer of the battery pack.
• Put a dollar value on five disruption scenarios (lost margin after recovered sales plus expediting) and turn them into one expected annual loss.
• Weigh the certain extra cost of a second battery-cell supplier against the expected disruption loss it avoids, and find the outage probability at which dual sourcing breaks even.
• Calculate the safety stock and its holding cost for eight service levels from 80% to 99.9%, see how fast the cost climbs at the top and draw the curve.
• Value five resilience investments by the expected loss they avoid, discount the net benefit over five years, pick the best one and total the portfolio worth funding.