Investing in redundancy is the most appropriate strategy for managing unknown risks in a global supply chain. Here’s a detailed explanation:

Unknown Risks: These are risks that cannot be predicted or quantified accurately, such as natural disasters, political instability, or sudden supply chain disruptions.

Redundancy Strategy:

Multiple Suppliers: Engaging multiple suppliers for critical components to ensure that if one supplier fails, another can step in.

Backup Inventory: Keeping additional inventory at strategic locations to buffer against supply disruptions.

Diversified Sourcing: Sourcing from different geographic locations to mitigate regional risks.

Risk Mitigation: Redundancy helps in spreading risk across multiple sources and ensures continuity in the supply chain despite unforeseen events.

Resilience: Building redundancy into the supply chain enhances resilience, enabling the company to respond and recover quickly from disruptions.

References

Christopher, M. (2016). Logistics & Supply Chain Management.

Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage.