Tag Archives: Capacity

Booming oil inventories in Catoosa, while East Coast price differences persist

An article in Bloombergbusinessweek (September 27, 2012) describes growing oil stocks in Catoosa, Oklahoma where oil generated in the Dakotas come to wait. A shortage of pipeline capacity to the East Coast means that prices in the East continue to … Continue reading

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The projected impact of insufficient port improvements on the US economy

An article in the Supply Chain Management Review (Sept 17, 2012 http://www.scmr.com/article/the_american_society_of_civil_engineers_say_u.s._supply_chains_at_risk/?goback=.gde_115985_member_165825492) states that investments in US marine ports ad waterways upkeep from now to 2020 is planned to be $ 16 billion lower than required, while investments in airports … Continue reading

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Japanese multinationals importing back into Japan

An article in Bloombergbusinessweek (September 17,2012) describes automobiles made in Thailand by Nissan but ported back for sales in Japan. At 1 million yen, it is 65% of the price of a Japanese made car and 34 % of the … Continue reading

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Should The Japanese and European governments assist automakers with demand growth ?

An article in the Wall Street Journal (September 15, 2012) describes a request by the CEO of Nissan, Carlos Ghosn, to the Japanese government to intervene to make the yen exchange rate more favorable to local production and encourage alternate … Continue reading

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Apple cuts chip orders to Samsung

An article in the New York Times (September 9,2012) claims that Apple has cut orders for memory chips sourced from its long time supplier, Samsung. Current patent disputes regarding the similarity of Samsung’s phone and the iphone have caused friction … Continue reading

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The reported 8471 % markup for drugs in the US

A report released on July 25, 2012 by staff in the US Senate committee on Commerce, Science and Transportation, examined the gray market for prescription drugs and why hospitals are forced to pay extremely high prices for some drugs. One … Continue reading

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Too few countries producing staple crops and associated risk

An article in the New York Times (September 7,2012) describes food price increases of 10% from June to July 2012, corn and wheat price increases of 25% and soybean price increases of 17%. The reason – drought in the US … Continue reading

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Volkswagen (VW) and its Modular Transverse Matrix strategy for part commonality

An article in Fortune (July 23, 2012) describes VW’s plan to standardize the 60 % of a car model’s cost – the front axle, heating, air conditioning etc across 40 car models and thus seven million units. The projected savings … Continue reading

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Lending plants to get OEMs back on track after the Japanese earthquake

A report published by the Congressional Research Service (“The Motor Vehicle Supply Chain: Effects of the Japanese Earthquake and Tsunami” by Bill Canis, May 23, 2011) describes an example in which Denso, a Tier 1 supplier to Toyota, decided to … Continue reading

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Making shoes for the world in Ethiopia ?

An article in the Economist (June 9, 2012) describes demand for $2 shoes in Ethiopia, as protection against injuries, worms etc that affect bare feet. The population of Ethiopia is expect to double by 2040, chronic hunger impacts fewer Ethiopians … Continue reading

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