Tag Archives: Capacity

Manufacturing hubs with entire supply chains in Ohio to be competitive

An article in Fortune (June 11, 2012) describes a plan proposed by Mark Kwamme to create Manufacturing hubs consisting of entire supply chains to compensate for higher labor costs. The goal is to reduce logistics costs and thus decrease overall … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , | Leave a comment

Moving production to the US despite lower Chinese manufacturing costs

An article in Bloombergbusinessweek (June 25, 2012) describes several examples of companies that moved production to the US from China, despite up to 30% lower Chinese manufacturing costs. For Lightsaver, the 30% lower manufacturing costs were compensated by costs of … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , | 1 Comment

Should natural gas filling stations be subsidized ?

An article in the New York Times (June 21, 2012) describes the abundant availability and low prices of natural gas, even though it could provide a cheaper, less polluting alternative to oil if available widely. A move to enable natural … Continue reading

Posted in Operations Management, Supply Chain Issues, Sustainability | Tagged , , , , , , , | 1 Comment

A shortage of jute bags hurts storage of a bumper wheat crop in India

An article in the Wall Street Journal (June 23, 2012) describes the large wheat harvest in India, but a shortage of jute bags. Indian law specifies that 100% of the wheat should use jute bags, to protect the industry and … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability | Tagged , , , , , , , , , , , , , | Leave a comment

Should broadband providers be permitted to charge by usage?

An article in the New York Times (June 26, 2012) describes plans by some internet providers to use usage based pricing. Under this model usage for regular subscriptions will be capped or discounts provided for lighter usage. But content providers … Continue reading

Posted in Service Operations | Tagged , , , , , | Leave a comment

Topshops within Nordstrom stores – a beneficial alliance for both ?

An article in the New York Times (July 12, 2012) describes a decision to open Topshop stores within Nordstrom’s stores. The limited line of Topshop fashion apparel, with new items delivered weekly, will enable Nordstrom to increase the speed of … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , | Leave a comment

Private Equity ownership and bulk purchasing savings

An article in the New York Times(July 12,2012) describes the private equity firm, the Blackstone Group, which owns 74 companies with a combined 700,000 employees. Across its companies, the firm buys 15 million reams of paper, 35 million FedEx shipments … Continue reading

Posted in Operations Management, Supply Chain Issues | Tagged , , , , , , , | 52 Comments

Fracking in the US and guar seed farmer impact in India

An article in the New York Times (July 16,2012) describes how growth in fracking for oil has resulted in increased demand for guar, a water absorbing seed grown primarily in India. With prices rising dramatically amidst growing oil company demand, … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , , | Leave a comment

The interaction between the Renewable Fuel Standard, drought and hunger

An article in the Opinion section of the Wall Street Journal (August 11, 2012) describes the Renewable Fuel Standard (RFS, which requires use of 13 billion gallons of ethanol based fuel this year and 36 billion gallons by 2022) and … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability | Tagged , , , , , | Leave a comment

Boeing’s delivery delays, airline order cancellations and profit impact

An article in the Wall Street Journal (August 24, 2012) describes a decision by Quantas Airlines to cancel orders for 35 Dreamliner airplanes. Delivery delays meant that the promised 20% fuel efficiency and 30 % lower maintenance costs did not … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , , | Leave a comment