An organization’s supply chain is greatly impacted by globalization and its complexity. This has resulted in having risk beyond just the demand and supply variability, limited capacity, and quality issues that domestic companies have traditionally faced. Traditionally, Inventories were the hedge against risk of supply variability. Trends today, such as greater customer expectations, global competition, longer and more complex supply chains, increased product variety with shorter life cycles, security, and political and currency risks, are making it much more difficult to decide how much inventory to carry, what type of inventory to carry and/or how long to hold the inventory.

Choose two of these seven specific risks and provide specific examples of each.