Tag Archives: Cost

“Pay for response” model for drug payment and consequences

Posted on March 18, 2012 by aviyer2010

An Op-Ed by Sam Waksal in the New York Times (March 7,2012) suggests a pay for response model for drug payments, where the measurable impact of drugs would trigger payments. The author claims that such payment schemes would incent drug … Continue reading →

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Will Apple succeed in changing supplier working conditions ?

Posted on March 18, 2012 by aviyer2010

An article in the New York Times (March 7,2012) describes pressures to improve Apple’s supplier, FoxConn’s working conditions, and the comparison to apparel supply chains. Unlike apparel supply chains, Apple’s products have higher margins, require quick response to design adjustments, … Continue reading →

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The Jones Act of 1920 and today’s gas prices

Posted on March 18, 2012 by aviyer2010

An article in the New York Times (March 11,2012) describes the impact of the 1920 Jones Act, that mandates use of US carriers, with US built ships and employing US cargo, for domestic cargo transport by sea. Thus, US oil … Continue reading →

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Boeing, Delta disagree regarding global supply chain impact

Posted on March 18, 2012 by aviyer2010

An article in the Wall Street Journal (March 16,2012) describes an attempt by Delta to cut the extent of loans provided by the US government financed Export-Import bank to Boeing’s potential customers. While these loans help Boeing grow its exports, … Continue reading →

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US low manufacturing wages and global supply chain impact

Posted on March 18, 2012 by aviyer2010

 An article in the Wall Street Journal (March 17,2012) describes manufacturing wage rates in Indiana of $12/hour with no unions in Muncie, IN, compared to twice that rate in Caterpillar’s Canadian plant. The impact – closure of the Canadian plant … Continue reading →

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Mexico auto exports to Brazil capped to settle a trade spat

Posted on March 18, 2012 by aviyer2010

An article in the Wall Street Journal (March 16,2012) describes Mexican auto exports growing to 20% of all imports into Brazil. Recent agreements between the countries have planned an auto import limit of $1.6 billion, down from the current $2.1 … Continue reading →

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The supply chain impact of minimum wage increases in China, Vietnam and Indonesia

Posted on March 18, 2012 by aviyer2010

An article in the Wall Street Journal (March 14,2012) describes the impact of wage increases in China on Charming Shoppes, owner of the Lane Bryant, Fashion Bug and Catherine labels. In addition to wage increases, the company realized that 60% … Continue reading →

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Refining capacity mismatch and gas price impact

Posted on March 6, 2012 by aviyer2010

An article in Bloombergbusinessweek (March 5,2012) describes the East coast refining capacity as dependent on Nigerian oil, but the Midwest refineries process higher sulphur content, cheaper Texas crude. Nigerian oil prices fluctuate with MidEast crisis, and thus make East Coast … Continue reading →

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India, China trade flows and market access

Posted on March 6, 2012 by aviyer2010

An article in Bloombergbusinessweek (Feb 27,2012) describes the 43 billion dollars of exports from China to India and the 10 billion exports from India to China. This trade imbalance has resulted in 46 complaints by India to the WTO about … Continue reading →

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Elpida bankruptcy and supply chain competitiveness

Posted on March 6, 2012 by aviyer2010

An article in the New York Times (Feb 29, 2012) describes the bankruptcy of Elpida, a Japanese DRAM chip manufacturer. Falling PC volumes, competition from South Korean manufacturers have caused prices to drop 85%. With the Japanese govt reluctant to … Continue reading →

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