Analysis Report On Supply Chain Disruption and Propose Strategies
Document Type:Application Essay
The extreme winds caused by Harvey hurricane recorded a devastating effect along the coastal regions of Texas. Furthermore, the documented impact of the cyclone Harvey was by far devastating as it affected Area of Houston - the fourth largest city in the United States, causing severe economic and social destruction. An estimated two hundred thousand people were affected and property projected to be 120,000 was destroyed. Multinational businesses were affected by the raging effects of hurricane Harvey, and most of the business operations were put at the stand still as a result of the hurricane (Sebastian, 2017 pp 15). Businesses Affected by the Hurricane Harvey Texas Petroleum Refinery Company is one of the many companies that were adversely affected by the impacts of hurricane Harvey.
2% in retail sales during the period in which the storm invaded the region. Disruption of machinery, supply of labor in the local market and national supply chain disruption as well as the goods to be produced is an effect caused by the exceeding lousy weather. The magnitude of damage on the property puts the impacts to last for a more extended period as addressing such costs may require the tremendous amount of money to be used which could be invested as increased capital on the retail sales (Stupak, 2017 pp. Extended periods of storm-impacted on the operations of small businesses with physical capital lose as the main impact that the enterprises incurred. The uninsured revenue production was estimated to be lost during the devastating natural catastrophe.
More importantly, it is not in the expectations of an economist to see an adverse and prolonged increase in prices of oil in the whole of the United States or the harsh resurgence of the economy in a short run. The federal monetary policy is extensive in covering such uncertainties. Nonetheless, the banking sector might be affected and therefore experience a deterioration of guaranteed quality services that can be delivered to the affected areas. The natural disaster that befell Gulf coast will change the supply chain of the oil in the world market as a result of reduced quantity in the world market (Nava, 2017 pp. Loss of employment opportunities as a result of evacuations caused by the impacts of hurricane Harvey negatively affected the economy since workforce was reduced hence changing income levels in the affected areas.
The insurance firms will be able to offset all the risks incurred by the company as a result of natural causes. Since premiums charged on natural disasters ate higher than average, the regulatory institutions need to chip in to help stabilizes the business so that most of the organizations and companies affected by the wrath of nature get full compensation of their loss. The inefficiencies resulting from the higher premium charges on the natural disaster risks lead to partial insurance which in turn affect the banking and financial institutions. Efficiency in insurance statements needs to be enhanced to provide prompt compensation ageist hurricane losses. Disaster assistance and relief should be provided by all the concerned bodies ranging from government to non-government agencies and charity bodies in helping the victims of such natural disaster.
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