Category Archives: Operations Management

Cargill – matching global supply and demand of agricultural commodities

An article in Fortune (Nov 7, 2011) describes Cargill’s role inmatching global supplies of soyabean, cotton, palm oil, beef and salt from Indonesia, Australia, Argentina and North America to customers. Charter ships are routed to minimize empty miles – as … Continue reading

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Slower, larger, less polluting but on time ships

In an interview with Nils Anderson, CEO of Moller-Maersk, in Fortune (Nov 7,2011), he claims that ships have a 50% on time arrival rate.  His company is now adding larger but slower ships, which will emit 50% less CO2, but … Continue reading

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A closed loop CO2 Supply chain?

An article in Fortune (Oct 17,2011) describes the mismatch between demand for CO2, its indequate supply in pure form, but its prevalence in the air.  Demand for CO2 is from soda manufacturers to make bubbles, greenhouse gases to speed plant … Continue reading

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Rare earth price surge and global supply chain response

An article in Fortune (Nov 7, 2011) describes the impact of the 1500 % price increase for rare earth metals from 2009 to 2010, the result of a 50 % cut in Chinese exports of rare earth metals.  With China … Continue reading

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Ozone regulation, local compliance and manufacturing impact

An article in the New York Times (17 Nov, 2011) describes the Federal govt’s decision to retreat from the EPA recommended standard of 70 parts per billion (ppb), a revision of the current 84 ppb rule.  Resistance from manufacturers was … Continue reading

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Thai floods, hard drive price increases and Dell Impact

An article in the New York Times (Nov 16, 2011) describes hard drive prices rising from $10 to $25 due the Thai floods, and their impact on Toshiba and Western Digital plants in Thailand. Earlier reports suggested that around 25% … Continue reading

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Crashing rare earth prices and impact

An article in the New York Times (Nov 15,2011) describes the 67% drop in prices for several rare earths including neodymium, cerium etc.  The rapid price increase in recent years was caused by China, which produces 97% of the world’s … Continue reading

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Topitop – the “Andean Zara” in Peru ?

A Wall Street Journal article (nov 14, 2011) describes the growth in the middle class from 41% to 51% of the population in the last decade in Latin America.  Defined as people earning 45 % to 70% of the per … Continue reading

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In Alabama -conflict between competitive agricultural products and strict immigration laws

An article in bloombergbusinessweek (Nov 14,2011) describes the impact of stricter immigration laws in Alabama – the near disappearance of workers from Guatemala who worked in the tomato fields and fish processing plants.  Given retail competition from importers who pay … Continue reading

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Borders bookstore operations and its trajectory to extinction

An article in bloombergbusinessweek (nov14, 2011) describes supply chain choices by Borders bookstores in its path to extinction. The company’s origins and growth were fueled by careful title sales tracking and inventory management, but its merger with Waldenbooks created an … Continue reading

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