Category Archives: Operations Management

Why did Amazon.com decide to provide Harry Potter e-books free ?

An article in the Wall Street Journal (May 11,2012) describes a decision by Amazon.com to provide Harry Potter e-books free to libraries, while paying book publishers the wholesale price. The article argues that Amazon will obtain profits from other purchases … Continue reading

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Apple’s global supply chain flow choices and tax impact

An article in the New York Times (May 2,2012) describes choices made by Apple in the organization of its product flows to avoid taxes. Apple’s distibutors in Germany are called “commissionaires” and do not take possession of inventory. Thus German … Continue reading

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Private Equity Efficiency Improvement and the Toyota Production System

An article in Bloombergbusinessweek (April 26, 2012) describes the efficiency improvement generated by a private equity firm Monomoy Capital Partners. Examples include reducing forklift times by 10 minutes, finding lost inventory, streamlining operations etc. The company claims to runs kaizens … Continue reading

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Possible reasons for Microsoft to invest in the Nook – Barnes & Noble’s ereader

An announcement of Microsoft’s investment in the Nook, Barnes & Noble’s ereader, was described in an article in the New York Times (May 1, 2012). But there are many possible reasons for this investment. Does the use of the Microsoft … Continue reading

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Oversupply of steel pipe in the supply chain ?

An article in the Wall Street Journal (May 1, 2012) describes a plant expansion by Timken in Ohio and a new plant in Texas to be opened by Tianjan Pipe, both focused on steel production for pipe used by the … Continue reading

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Harmonizing trade regulations and supply chain impact

In an article in the Wall Street Journal (May 1,2012) Cass Sunstein, administrator of the White House Office of Information and Regulatory Affairs, describes steps taken by the US government to harmonize regulations across countries to reduce costs. Examples cited … Continue reading

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Rising palladium prices and drivers

An article in the Wall Street Journal (April 25, 2012) describes rising prices of palladium, a metal used in gasoline car exhausts. It is the sister metal of platinum, used in diesel car exhausts. Rising sales in the US and … Continue reading

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Delta Airlines going upstream to save costs – are there risks ?

An article in CNNMoney (http://money.cnn.com/2012/04/30/news/companies/delta-oil-refinery/index.htm?hpt=hp_t2) reports on a plan by Delta Airlines to buy the Trainer oil refinery in Philadelphia to produce jet fuel. The claim is that the purchase of the refinery for $ 150 million will allow Delta … Continue reading

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The “Swissness” of watches made in Switzerland

An article in the New York Times (April 28, 2012) describes plans to change the current “Swiss-made” labeling requiring 50 % of the value of movement to be made in Switzerland, with new 80% requirement. Swiass watches account for 3 … Continue reading

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McDonalds and their supply chain visibilty strategy

An article in Bloombergbusinessweek(April 23, 2012) describes pressures on McDonalds to identify its food supply chain. Chipotle focuses on its meat being obtained from pen free and cage free organic cources and vegetables from farms within 350 miles. Five Guys … Continue reading

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