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Monthly Archives: June 2012
Boeing’s 66th Dreamliner aircraft first to go to preflight from assembly
An article in the Wall Street Journal (June 8, 2012) describes a milestone reached by the 66th Dreamliner aircraft – the first to reach normalized production i.e., go from assembly to preflight testing. That milestone was reached by the Airbus … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Airbus, Airplanes, Boeing, Cost, Design, manufacturing, Margins, Outsourcing, Supply Chain
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Trading zero emission credits to comply with state regulations
An article in Bloombergbusinessweek (June 7, 2012) describes California’s regulation requiring 2 % of cars sold by automakers selling 60,000 cars annually to be zero emission by 2014 and 15 % by 2025. But automakers can also buy credits from … Continue reading
Posted in Operations Management, Supply Chain Issues, Sustainability
Tagged automobiles, Cost, credit trading, Design, Environment, manufacturing, regulation
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Barnes & Noble claims elimination of agency pricing will increase prices
An article in the New York Times (June 8, 2012) describes the Justice department’s settlement with publishers to eliminate “agency pricing” which was claimed to enable collusion among publishers for ebook prices. Under agency pricing, five publishers were allowed by … Continue reading
Posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues
Tagged Consumers, Cost, ebooks, Ecommerce, Legal, regulation, Supply Chain
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India’s large grain stockpiles, yet 21% undernourished
An article in the New York Times (June 8, 2012), describes the 71 million tons of grain stockpiles in India, the world’s second largest invenory. But distribution to its poor citizens through ration shops is inefficient and corrupt, leaving 21% … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Efficiency, Global, grain, India, Inventory, regulation, Supply Chain
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A shift from camel to colorful jeans
An article in the Wall Street Journal (May 31, 2012) describes the shift in the color palette from camel, six months ago, to mango, neon pink, purple, red etc. The new trend has customers shifting to color and thus buying … Continue reading
Nokia’s smartphone component costs vs Apple’s iphone component costs
An article in the Wall Street Journal (May 31, 2012) describes an estimate by iSuppli that components for the Nokia Lumia 900 cost $ 209 while those for the 16GB iPhone cost $ 190. But the Lumia sells for $ … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged competition, Cost, Global, Growth, manufacturing, Margins, Risk, Suppliers, Supply Chain
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Amazon requesting some of its sales tax back from California cities
An article in the Wall Street Journal (May 31, 2012) describes a request by Amazon, which recently agreed to collect sales taxes for purchases soon, to get back some of the sales tax as an incentive. The company claims that … Continue reading
Posted in Ecommerce, Supply Chain Issues
Tagged Amazon.com, competition, Consumers, Cost, Ecommerce, regulation, Retail, sales tax incentive, Suppliers, Supply Chain, Trends
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Export US gas or keep it to reduce energy costs at home
An article in the Wall Street Journal (May 31, 2012) describes a US decision to hold exports of natural gas, whose generation capacity has grown rapidly. Countries like Japan want to use liquified US gas in the future to replace … Continue reading
Posted in Operations Management, Supply Chain Issues, Sustainability
Tagged Cost, exports, manufacturing, regulation, Risk, Supply Chain, Sustainable
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Battery manufacturing capacity rampup and short and long term impact
An article in the Wall Street Journal (May 31, 2012) describes the US government’s $ 1.26 billion investment in battery capacity, and demands for rapid ramp up and hiring to create 6400 jobs. The slow growth rate implied only 2000 … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability
Tagged China, competition, Consumers, Cost, Global, government, manufacturing, Risk, Suppliers, Supply Chain
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