Category Archives: Operations Management

Supply Chain Coordination issues – Book Publishers, Apple and Amazon

Posted on January 28, 2012 by aviyer2010

An article in Bloombergbusinessweek (Jan 30,2012) describes the conflict between publishers and Amazon.com ebook pricing plans of $ 9.99, the publisher controlled pricing model for sales on Apple’s iPad (termed agency pricing), and the resulting threat to without sales on … Continue reading →

Posted in Collaboration, Ecommerce, Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , , , , | 1 Comment

Danish wind energy production surges and the cost of smoothing supply

Posted on January 27, 2012 by aviyer2010

An article in the New York Times (Jan 22, 2012) describes the power surges due to high winds in Denmark and the payment to other countries to take the energy generated.  Surges in wind and the consequent energy generated are … Continue reading →

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Economies of scale vs risk in concentrating hard drive production in Thailand

Posted on January 27, 2012 by aviyer2010

An article in the New York Times (Jan 20, 2012) describes the quandry faced by hard drive manufacturers in Thailand whose plants were deluged during the floods.  Slow recovery of manufacturing raises the benefit of concentration of this industry (40-45 … Continue reading →

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WRAP certification and supplier competitiveness

Posted on January 18, 2012 by aviyer2010

An article in the Sourcing Journal (https://www.sourcingjournalonline.com/wrap-surge-demand-compliance-certification-emerging-asian-markets) describes the increasing demand for WRAP (Worldwide Responsible Accredited production) from suppliers in Bangladesh, India, Vietnam and Pakistan, in addition to China. As OEMs are forced to certify their supply chains, suppliers with … Continue reading →

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Apple’s public release of its supplier audit and impact

Posted on January 17, 2012 by aviyer2010

An article in the Wall Street Journal (Jan 16, 2012) describes Apple’s decision to publicly release its supplier audit. The report includes 229 audits in China and problems with 112 locations and requires suppliers to (a) improve conditions at plants, … Continue reading →

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Momentum Accounting and supply chain impact

Posted on January 17, 2012 by aviyer2010

An article in the Wall Street Journal (Sept 27, 2011) described a “momentum accounting” decision by Diamond Foods to pay walnut growers about 25 cents a pound or more. The company described it as an attempt to maintain profitability of … Continue reading →

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The Berry Amendment for US Army sourcing and global supply chain impact

Posted on January 15, 2012 by aviyer2010

An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the Berry Amendment, a 1941 amendment requiring self sufficiency of Army supplies.  A current plan to have combat clothing made of silk to reduce the impact of IEDs (improvised explosive … Continue reading →

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From China to Cambodia – shifts in the global apparel supply chain

Posted on January 14, 2012 by aviyer2010

An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the rising yuan, environmental rule enforcement and rising wages (18 to 20% annually the past three years) driving manufacturing to locations out of China – such as Cambodia. With weekly … Continue reading →

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Using the GSP program with Egypt to import duty free to the US

Posted on January 11, 2012 by aviyer2010

An article covering a speech by US officials (http://thedailynewsegypt.com/trade/us-trade-officials-urge-egypt-to-utilize-gsp-program.html) describes Egypt’s GSP (Generalized System of Preferences) program with the US. Exporters can apply to have their products listed under GSP and thus export duty free to the US. Current duty … Continue reading →

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Global Apparel Sourcing Trends

Posted on January 11, 2012 by aviyer2010

An article in Sourcing online (http://www.sourcingjournalonline.com/wheres-and-whys-2012-apparel-sourcing-trends) describes rising labor costs in China and its impact. The article cites lead time, flexibility and variety as issues to consider in sourcing. Vietnam benefits from being close to mills in China, Bangladesh has … Continue reading →

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