Monthly Archives: November 2011

Global Impact on the US oil pipeline supply chain configuration

An article in the New York Times (17 Nov, 2011) describes the ripple effect of decreased Venezuelean crude supply (due to the political stress in Venezuelan-US relations) on capacity utilization at Texas refineries that process heavy crude. The alternative crude … Continue reading

Posted in Global Contexts, Supply Chain Issues | Tagged , , , , | Leave a comment

Ozone regulation, local compliance and manufacturing impact

An article in the New York Times (17 Nov, 2011) describes the Federal govt’s decision to retreat from the EPA recommended standard of 70 parts per billion (ppb), a revision of the current 84 ppb rule.  Resistance from manufacturers was … Continue reading

Posted in Operations Management, Supply Chain Issues | Tagged , , , , , , | Leave a comment

Thai floods, hard drive price increases and Dell Impact

An article in the New York Times (Nov 16, 2011) describes hard drive prices rising from $10 to $25 due the Thai floods, and their impact on Toshiba and Western Digital plants in Thailand. Earlier reports suggested that around 25% … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , | Leave a comment

Crashing rare earth prices and impact

An article in the New York Times (Nov 15,2011) describes the 67% drop in prices for several rare earths including neodymium, cerium etc.  The rapid price increase in recent years was caused by China, which produces 97% of the world’s … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , | Leave a comment

Topitop – the “Andean Zara” in Peru ?

A Wall Street Journal article (nov 14, 2011) describes the growth in the middle class from 41% to 51% of the population in the last decade in Latin America.  Defined as people earning 45 % to 70% of the per … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , | Leave a comment

In Alabama -conflict between competitive agricultural products and strict immigration laws

An article in bloombergbusinessweek (Nov 14,2011) describes the impact of stricter immigration laws in Alabama – the near disappearance of workers from Guatemala who worked in the tomato fields and fish processing plants.  Given retail competition from importers who pay … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , | 1 Comment

Borders bookstore operations and its trajectory to extinction

An article in bloombergbusinessweek (nov14, 2011) describes supply chain choices by Borders bookstores in its path to extinction. The company’s origins and growth were fueled by careful title sales tracking and inventory management, but its merger with Waldenbooks created an … Continue reading

Posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , | Leave a comment

Global steel demand and Arcelormittal’s capacity adjustment

An article in bloombergbusinessweek (nov 14, 2011) describes the impact of the doubling of steel capacity in china from 2005 to 2010, the consequent global exports at cut rate prices of supply in excess of chinese demand, and its impact. … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , | Leave a comment

Apple’s supply chain strategy – more insights

An article in bloombergbusinessweek (Nov 7,2011) describes Apple’s plans to invest $ 7.1 billion in its supply chain and commit $ 2.4 billion in prepayments to suppliers. It describes Apple’s decisions to buy such large volumes of high-end drills that … Continue reading

Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , , , , | Leave a comment

US auto jobs growth and supply chain impact

An article in bloombergbusinessweek (Nov 7,2011) describes growing employment in the us auto industry, projected to be 88,000 by 2015. The reasons – a 10 % sales increase this year, production to rebuild inventory lost due to the earthquake in … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , | Leave a comment