Category Archives: Operations Management

WTO disapproval of China’s use of GATT to justify export controls of metals

Posted on January 31, 2012 by aviyer2010

An article in the New York Times (Jan 30, 2012) describes a decision by the World Trade Organization (WTO) against China’s use of export controls for zinc, bauxite etc t0 incent manufacturers to locate plants within China. Use of GATT … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, disruption, Global, Legal, manufacturing, regulation, Suppliers, Supply Chain, Sustainable | Leave a comment

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 Collaboration, competition, Coordination, Cost, Ecommerce, Efficiency, Margins, Suppliers, Supply Chain, Trends | 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 →

Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability | Tagged Coordination, Cost, Demand Surge, disruption, Risk, Supply Chain, Sustainable | Leave a comment

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 →

Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues | Tagged Cost, Design, floods, Global, manufacturing, Risk, Supply Chain, Thailand | 1 Comment

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 →

Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability | Tagged competition, Consumers, Cost, Global, regulation, Supply Chain, Sustainable, Trends | 1 Comment

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 →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Consumers, Cost, Global, manufacturing, regulation, Supply Chain | Leave a comment

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 →

Posted in Operations Management, Supply Chain Issues | Tagged Cost, Legal, Low Margins, Margins, Suppliers, Supply Chain | Leave a comment

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 →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, Design, Global, Imports, regulation, Suppliers, Supply Chain, Sustainable | 1 Comment

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 →

Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues, Sustainability | Tagged competition, Cost, Global, Growth, Infrastructure, manufacturing, river transport, Suppliers, Supply Chain, Sustainable | Leave a comment

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 →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Collaboration, Cost, disruption, Global, regulation, Risk, Service, Supply Chain | Leave a comment