Category Archives: Operations Management

Making the case for “cost effectiveness” of new drugs

A story in the Wall Street Journal (August 1, 2011) describes the challenges in launching new drugs, given the “cost effectiveness” concern by health authorities. This means that new drugs have to be effective in treatment, but also deliver sufficient … Continue reading

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Walmart’s plans to buy vegetables and fruits locally

A Wall Street Journal article (August 1, 2011) describes plans by Walmart to double its local purchase of fruits and vegetables by 2015 – with local defined as purchases from the state the store is located.   Thus Walmart buys jalapeno pepper … Continue reading

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“Piccolo bello” fims in Italy and regulation

A New York Times article (29 July 2011) describes the challenges faced by small Italian firms (“piccolo bello”) which form the backbone of the industry in Padua, Italy.  Firms face the need to work with 10 to 20 different government … Continue reading

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Pipeline capacity location and demand-supply matching

A Wall Street Journal article (29 July 2011) describes the reduced demand for pipeline capacity from the Midwest and Canadian locations to the Northeast (with capacity reported to drop by 44 %) as increased gas is shipped from the Marcellus … Continue reading

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Product package size and associated potential liability

A Wall Street Jorunal article (28 July 2011) describes a lawsuit in Las Vegas against generic manufacturers of propofol used in colonoscopy.  The manufacturers sold 50 milliliter bottles that could be used for at least two procedures.  However, labels on … Continue reading

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Boeing design choice for the new 737 and Airbus announcement

A Wall Street Journal article (28 July 2011) describes Boeing’s CEO McNerney defending Boeing’s plan to offer an upgraded design for the 737 versus an anticipated new design.   Many in the industry had anticipated a newly designed 737, and this … Continue reading

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54.5 mpg by 2025

A Wall Street Journal (28 July 2011) describes an agreement between the auto manufacturers and the US government to double the average mileage from 27.3 mpg to 54.5 mpg. Attaining this mileage can involve use of solar panels, battery power, … Continue reading

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US Auto supply chain recovery from tsunami related glitches and growth impact

A Wall Street Journal article (July 27, 2011) links the impact of the tsunami, and part shortages, on US auto production (a drop of 5.9 %) and thus dampened growth of the US economy in the second quarter 2011 (1.9 … Continue reading

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The US and Mexico Truck Transport Agreement

A New York Times article (July 6, 2011) summarizes the recent agreement to let Mexican truckers carry loads into US destinations, thus decreasing trade frictions (cost and time delays) at the US-Mexico border.  In turn, this agreement decreases Mexican tariffs … Continue reading

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JIT workers and Sales Impact

A Wall Street Journal article (July 27, 2011) describes the 2009 sales drop of 4.5 % and employment drop of 8.3 % and a ten year growth of 19 % while private sector jobs dropped 2 million.  One concept described … Continue reading

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