Category Archives: Operations Management

Fair Trade smartphones ?

An article in the Financial Times (May 9, 2013) describes a Dutch company, Fairphone, that intends to create a smartphone using a “Fair Trade” supply chain. This means the phone is recyclable, can be repaired, the supply chain will minimize … Continue reading

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Does the hospital penalty for “excessive” re-admits improve service quality ?

An article in the Wall Street Journal (May 5, 2013) discusses the impact of the Affordable Care Act’s penalties for hospitals with excessive re-admits within 30 days, set at 1% in 2013 and going up to 3% in 2015. But … Continue reading

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The competitive response to Apple’s decision to change its device connectivity

An article in the New York Times (May 6,2013) describes the accessory supplier’s response to Apple’s decision to change the connection for its devices. The new connection decision by Apple makes all existing accessories obsolete, with no advance notification provided … Continue reading

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Shifting manufacturing from China to other parts of Asia as costs rise

An article in the Wall Street Journal (May 1,2013) describes decisions by Coach to reduce its manufacturing in China to 50% in 2015 (from 80% in 2011), by Crocs to reduce its footwear manufacturing to 65% this year from 80% … Continue reading

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Differing manufacturer responses to the Bangladesh factory collapse

An article in the New York Times. (May 1,2013) describes the differing public stances by manufacturers. Bennetton, the Children’s Place and Cato Corporation distanced their link to the plant they used as a source, claiming their garments were not on … Continue reading

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Slower growth, higher margins as Amazon.com plays middleman

An article in the Wall Street Journal (April 26,2013) describes Amazon.com’s growth as lowing, from 34% last year to 22% for the same quarter this year, while margins increased by 33% to 26.6%. The author claims the slowdown is the … Continue reading

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Steel manufacturer’s competitive response to falling steel prices

An article in the Wall Street Journal (April 27, 2013) describes the decline in steel prices and the response by steel manufacturers. ThyssenKrupp is claimed to offer to pay freight costs to maintain market share. Further price discounts of 5 … Continue reading

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P&G’s claim of “win-win” by delaying supplier payments but enabling borrowing at lower rates

An article in the Wall Street Journal (April 16.2013) describes a plan by Proctor & Gamble to delay supplier payments beyond 60 days as against the current 45 days, to free up over $2 billion in cash. Suppliers would be … Continue reading

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Should patent length vary by industry to spur innovation ?

An article in the Wall Street Journal (April 24,2013) describes a proposal to vary patent protection length by industry, rather than the US standard of 17 years. It reports the chairman of Amazon, Jeff Bezos, as suggesting 3 years as … Continue reading

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The competitive retail supply chain impact of online US sales tax collection requirements

An article in the Wall Street Journal (April 22,2013) describes the proposed impact of a Senate bill requiring online retailers to collect sales taxes based on buyer location. The goal is to level the playing field for brick and mortar … Continue reading

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