Tag Archives: Capacity

The impending demise of vertical integration amongst oil companies ?

An article in bloombergbusinessweek(14 nov, 2011) describes the conundrum faced by Marathon Oil, whose oilfields in Angola and Norway were not close to its refineries and transportation assets. The result, most of the oil the company refined was purchased from … 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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Global Impact on the US oil pipeline supply chain configuration

An article in the New York Times (17 Nov, 2011) describes the ripple effect of decreased Venezuelean crude supply (due to the political stress in Venezuelan-US relations) on capacity utilization at Texas refineries that process heavy crude. The alternative crude … 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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Global steel demand and Arcelormittal’s capacity adjustment

An article in bloombergbusinessweek (nov 14, 2011) describes the impact of the doubling of steel capacity in china from 2005 to 2010, the consequent global exports at cut rate prices of supply in excess of chinese demand, and its impact. … Continue reading

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Thai floods, supply chain and insurance impact

An article in the Wall Street Journal (Nov 3, 2011) describes the floods in Thailand impacting 25% of the world’s supply of hard drives. The Honda plant’s water damage impacted global supply of components, and a plant in Brazil had … Continue reading

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Federal response to vital Medicine shortages in US hospitals

A New York Times article (Oct 31, 2011) describes Federal attempts to ease shoratges of sterile injectables that constutue 74 % of drug shortages.  The government blames market concentration – 90 % of the medicines are bought by five hospital … Continue reading

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Defense support for biofuels for aircraft and impact

A Bloombergbusinessweek article (oct 31-Nov 6, pg 44-45) decsribes plans by the navy and Marines to shift 50 % of their fuel to renewbale sources by 2020, the Army 25 % by 2025. Sources include camelina (an oil bearing plant), … Continue reading

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Restructuring the global supply chain at Whirlpool

A Wall Street Journal article (Oct 29, 2011) describes the extra capacity held by appliance makers anticipating a demand rebound from 25 % low in the US and a 15 % drop in Europe compared to past levels. But continued … Continue reading

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Now Thai floods and Japanese auto supply chain impact

A Wall Street Journal article (Oct 29, 2011) describes the impact of flooding in Thailand, which has resulted in two Sony plants deluged, Toyota suppliers impacted, a Honda plant impacted for six months etc. Given the disruption caused by the … Continue reading

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