Category Archives: Capacity

AI Use trends across businesses – who is using it, and how are they improving productivity ?

Analysis of a survey of over 1.2 million firms (NBER # 32319) in a paper titled “Tracking Firm use of AI in Real Time” suggests that the fraction of firms reporting use of AI grew from 3.2% to a projected … Continue reading

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Cocoa risks – high prices, the EU deforestation initiative, cocoa substitutes

An article in foodnavigator.com titled “Six startups rethinking cocoa for alt choc innovation” describes the combined impact of cocoa bean prices exceeding 10,000 euro per metric ton and the new European Deforestation Regulation starting December 2024 as driving substitutes for cocoa. Celleste … Continue reading

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Boeing division, to independent supplier, back to Boeing, the story of Spirit Aerosystems

An article in the Wall Street Journal (July 2, 2024) titled “Boeing Calls Time on the Great American Outsourcing” describes the reintegration of supplier Sport Aerosystems back into Boeing as a failed attempt at outsourcing. When Spirit split from Boeing, … Continue reading

Posted in Capacity, Coordination, Cost, logistics, Made in USA, manufacturer, Operations Management, productivity, supplier | Tagged , , , , | Leave a comment

Treating patient’s at home: good idea or potential liability?

An article in the Wall Street Journal (August 13, 2024) titled “Hospital’s New Push: Treat Patients in Their Homes”, describes the over 23,000 Medicare treated at home through April this year. The rules require the patients to be less than … Continue reading

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Global freight charges surge in response to supply chain demand and supply disruptions

An article in the Wall Street Journal (June 24, 2024) titled “Ocean Shipping Prices are Pushing Towards Pandemic-Era Highs” describes the doubling of freight from Asia to the East coast of the US. It suggests that the Houthi rebel ship … Continue reading

Posted in Air, Capacity, China, congestion, logistics, Made in USA, ordering, Prices, ship, supplier, Supply Chain Issues | Tagged , , , | Leave a comment

Climate change and its impact on olives, coffee and grapes

An article in the Wall Street Journal (June 10, 2024) titled “Climate Change is Coming for the Finer Things in Life” describes heavy rains causing mildew that has destroyed grapes in Italy, hot weather and drought impacting olive groves and … Continue reading

Posted in Capacity, Cost, disruption, Global Contexts, logistics, productivity, Supply Chain Issues, Sustainability, technology | Tagged , , , , , , , , , , , | Leave a comment

Did Boeing favor “Speed over Quality” ?

An article in the New York Times (March 28, 2024) titled “”‘Shortcuts Everywhere’: How Boeing Favored Speed over Quality” describes examples of monthly production rates of the 737 Max increased from 42 in 2017 to 52 in 2018, suppliers pushed … Continue reading

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Did Large Grocers use their size to get better delivery volumes during the Pandemic ?

An article in the Wall Street Journal (March 21, 2024) titled ‘FTC Finds Large Grocers Used Size to Stock Shelves During the Pandemic” describes claims that large grocery retailers demanded stricter delivery requirements and levied fines on suppliers who did … Continue reading

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Dynamic Pricing in restaurants and Impact

An article in the Wall Street Journal on March 10, 2024, titled ” Surge Pricing is coming to More Menus near you”, describes dynamic pricing at restaurants to reflect demand increases, estimated to increase revenues between 4 and 6%. The … Continue reading

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The Logistics Impact of disruptions in the Suez and Panama canals

An article in the Wall Street Journal, March 10 2024, titled “Two Canals, Two Big Problems – One Global Shipping Mess” describes the logistics impact of low water levels in the Panama Canal and the Houthi rebel attacks on ships … Continue reading

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