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Tesla's most common challenges during the pandemic COVID-19

Issues

1. supply chain disruptions and Semiconductor shortage

2. Factory shutdowns, production halts, and labor issues

Need two recommendations that would have fixed the issues and justify why they will work.

Sample Answer

The core issues of supply chain disruptions and semiconductor shortages, leading to production halts and labor problems, stem from a global over-reliance on a few geographical regions and a lack of real-time inventory visibility.

Here are two strategic recommendations to address these issues, with justifications for their effectiveness:

1. Implement a Dual-Sourcing and Regionalization Strategy

This strategy involves moving away from the "single-source-best-cost" model and intentionally diversifying the locations and suppliers for critical components like semiconductors.

Mandate and Subsidize Digital Supply Chain Visibility

This recommendation focuses on immediately addressing the "bullwhip effect," where small changes in retail demand trigger massive, disruptive swings in factory orders due to poor communication up the supply chain.

Recommendation	Justification
Digital Visibility & Real-Time Data Sharing	Optimizes Inventory and Prevents Panic Buying: A major issue during the shortage was companies over-ordering components (panic buying) because they lacked real-time visibility into their suppliers' current capacity, inventory, and actual downstream demand. Mandating the use of technologies (like blockchain or advanced IoT sensors) to share real-time, validated data across the value chain allows manufacturers to: 1. Forecast accurately, matching production to actual consumer demand. 2. Avoid excess inventory and stockouts. 3. Mitigate labor issues by stabilizing production schedules and minimizing sudden plant shutdowns.

Recommendation

Justification

Digital Visibility & Real-Time Data Sharing

Optimizes Inventory and Prevents Panic Buying: A major issue during the shortage was companies over-ordering components (panic buying) because they lacked real-time visibility into their suppliers' current capacity, inventory, and actual downstream demand. Mandating the use of technologies (like blockchain or advanced IoT sensors) to share real-time, validated data across the value chain allows manufacturers to: 1. Forecast accurately, matching production to actual consumer demand. 2. Avoid excess inventory and stockouts. 3. Mitigate labor issues by stabilizing production schedules and minimizing sudden plant shutdowns.