Final answer:
Organizations considering supply chain design must evaluate the cost of inputs, embrace new technologies, and account for government policies, while also ensuring labor rights protection to optimize production costs and supply volumes.
Step-by-step explanation:
When designing their supply chain, organizations need to consider several variables to ensure efficiency and sustainability. These variables include:
- Cost of Inputs: This refers to the price of the raw materials and components required for production. Changes in these costs can significantly affect a company's operation costs and profitability.
- New Technologies: The integration of advanced technologies can streamline supply chain processes, reduce errors, and introduce efficiencies. Companies must stay abreast of technological developments to maintain competitive advantage.
- Government Policies: Decisions made by governments can have a direct impact on supply chains through regulations, tariffs, or support measures. Organizations must navigate these policies effectively to optimize their supply chain strategy.
Additionally, protecting labor rights and investing in the workforce is essential for sustainable supply chain management. Together, these variables influence the cost of production and the volume that firms are willing to supply at given prices.