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Category Archives: Operations Management
Apparel retailers masking price increases
A New York Times article (23 April 2011) describes attempts by retailers to carefully choose price increases by type of apparel in an effort to manage the impact of cost increases. Some of the strategies listed include changing from 50 … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Apparel, Consumers, Cost, Margins, Retailers, Suppliers
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Apple and supply chain capability
An article in CNN Money by David Goldman (http://money.cnn.com/2011/04/22/technology/apple_supply_chain/index.htm?hpt=T2) describes how Apple exercises its supply chain power. The author claims that since Apple has five main products (iPad, iPhone,iPod,Mac, AppleTv) and 15 variations total , and that these designs have … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capability, Capacity, Cost, Global, Growth, Supply Chain
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Swatch sales growth and its component supply impact
A New York Times article (April 23,2011) describes the 42 % net profit increase and sales growth at Swatch, the Swiss watch company. The company is rushing to satisfy demand in Asia and expects to add over 2,000 employees in … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Dual Sourcing, Global, Growth, manufacturing, Supply Chain
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Smithsonian and “Made in America” requirements
An article in the Washington Post (http://www.washingtonpost.com/politics/smithsonians-made-in-america-mandate-not-easy-to-achieve/2011/04/13/AFFA2RqD_story.html?utm_source=eMail_OMNow_utm_medium=eMail_utm_campaign=OMNow__2011422) describes the impact of a “Made in America” requirement, spurred by Senator Bernie Sanders and Rep Nick Rahall, to require the Smithsonian to sell only products made in America in its gift shops. … Continue reading
The diminishing impact of clusters in global supply chains
An article in the Economist (April 16, 2011) describes the diminishing fortunes of clusters in Italy – cotton fabrics, jewelry, brass fittings etc. Italy has over 100 such clusters, developed around generations of skill development and access to natural resources. … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged clusters, Cost, Global, Italy, Supply Chain, Trends
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Rail Capacity shortages cause auto shipment delays
A Wall Street Journal article (April 13, 2011) describes the impact rail shipment delays on car manufacturer inventories. During the recession, railroads decreased their rail cars and cut their staff. The sudden expansion of car shipments has created a surge … Continue reading
Posted in Operations Management, Service Operations, Supply Chain Issues
Tagged Consumers, Cost, Growth, manufacturing, river transport, Supply Chain
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Are manufacturers that hedge against risks more risky ?
A Wall Street Journal article (April 13, 2011) describes the worries of manufacturers, such as Caterpillar, Ford, Boeing etc that use hedging instruments to decrease risk. Their concern is whether their banks could now require them to back up any … Continue reading
Posted in Operations Management, Supply Chain Issues
Tagged Cost, derivatives, hedging, Risk, Supply Chain, working capital
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Price fixing of detergents by manufacturers seeking green solutions
A New York Times article (April 13, 2011) describes fines levied on Proctor & Gamble ($ 306 million) and Unilever ($ 104 million euros) for price-fixing to maintain market shares as they worked together in an industry association to implement … Continue reading
Hospital Penalties for preventable patient infections ?
A New York Times article (April 13,2011) describes a study doe by the VA hospital to screen patients for MRSA, require use gloves and gowns and hand washing by care providers. The study reported a 62 % drop in infections … Continue reading
Posted in Operations Management, Service Operations, Supply Chain Issues
Tagged Consumers, Cost, hospitals, infections, Service, Supply Chain
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Nissan’s Recovery from the Japan Earthquake
A Wall Street Journal article (April 8,2011) describes how Nissan rallied after the Japan earthquake to restore its supply chain. Immediately after the quake, the disaster team took stock of the supply chain and, in one hour, got a read … Continue reading