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The devastating impact of COVID-19 on national and global supply chains is being studied by experts all over the world. It has also presented research opportunities for supply chain professors in Rochester Institute of Technology’s Saunders College of Business and created a robust discussion between RIT students and faculty.
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Assistant Professor Steven Carnovale and his colleagues study trends and developments in the logistic industry. Based on their research, they created the Logistics Managers’ Index, which uses logistics metrics such as transportation, warehousing and inventory to predict potential movements in the economy. Carnovale drew upon this research to explain to students the impact of COVID-19-related supply chain issues.
“At the point where COVID-19 became a global phenomenon, I was able to relay to the class how supply chain is the center of gravity when it comes to sourcing, manufacturing and distribution. Everything is interrelated,” said Carnovale, who teaches Supply Chain Fundamentals, an A to Z understanding of how supply chain works. “COVID-19 is inducing a bull-whip effect where manufacturing decisions, the demand for supply, and disorganization results in one of the most common problems in supply chain management.”
Carnovale and his colleagues tweaked their curriculum to reflect what balances the flows of inbound and outbound materials, how manufacturers have had to move facility operations to domestically based operations, and how companies are reconsidering sourcing decisions in the midst of COVID-19.
“In the recession of the early ’90s, retailers kept about 60 days of inventory, which is a lot of inventory,” he explained. “COVID-19 created a giant supply chain disruption and the inflow of materials essentially stopped. As a result, it’s important for our students to understand topics like the total cost of ownership, pricing of products and shipping, supplier discounts, the impact of moving operations domestically, and NAFTA, which is conducive to trade.”