Tag Archives: Cost

Yuan currency swaps and trade with Pakistan, Thailand and Argentina

An article in the Sourcing Journal (Dec 28, 2011 news@sourcingjournalonline.com) describes a decision by the Chinese govt to permit yuan currency swaps with Pakistan, Thailand and Argentina. For example, 10 billion yuan were exchanged for 140 billion Pakistan rupees. Thus … Continue reading →

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

The “hourglass economy”, WalMart and “fishing equipment” assortments

An interview with Stephen Quinn, Chief Marketing Officer at Walmart, in Fortune (Dec 26,2011) describes the “hourglass economy” in the US in 2011, with a decrease in the size of the middle class, lowered spending capability for the lower percentiles … Continue reading →

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

The impact of HR 2245 “Preserving Access to Life Saving Medications Act 2011”

Bill HR 2245 plans to require drug manufacturers to notify the Federal govt, 6 months in advance, of potential shortages. Shortages are defined as situations where the total supply is less than observed demand. The Federal govt is then required … Continue reading →

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

The global supply chain for Michael Kors and impact

An article in the New York Times (Dec 20, 2011) describes Michael Kors Holding, an apparel company that generates 95 % of its revenues in the US and Canada, makes its apparel in Asia, and is incorporated in the British … Continue reading →

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

Planning the impact of fog, snow and rain at UPS to prevent delivery delays

A Wall Street Journal article (Dec 23, 2011) describes the 120 million packages delivered by UPS in the week of Dec 25, with late shipments creating costs between $5 and $ 30. UPS claims that its monitoring of the weather … Continue reading →

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

Business Class seat comfort based airline competition and supply chain impact

An article in Bloombergbusinessweek (Dec 19,2011) describes airline competition to attract business class passengers, who pay 3 to 10 times the economy fare, are 15 % of the seats but 50% of the flight revenue.Business class seats, with new features, … Continue reading →

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

Reverse Logistics – managing the US Army withdrawal from Iraq

An article in Bloombergbusinessweek (Dec 19, 2011) describes the management of the ramp down in Iraq, with 2 million items to be accounted for removal. The choices (1) donate to Iraq,(2) ship back to the US Army for use, (3) … Continue reading →

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

Reducing design elements to improve supply chain performance at Lego

An article in Bloombergbusinessweek (Dec 19,2011) describes Lego’s decision to outsource themeparks, sell the entertainment division and decrease the number of design elements available to designers from 12,900 to 7,000. The company describes each new element as creating both mold … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , | 2 Comments

How many domestic automakers does China need ?

An article in Bloombergbusinessweek (Dec 19, 2011) describes China’s auto sector has having 70 automakers with 55 of them accounting for 11 % of sales.  Foreign automakers account for 58% of sales.  The Chinese government plans to further concentrate the … Continue reading →

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

Swatch’s plans to cut back component sales to competitors and supply chain impact

A New York Times article (Dec 10, 2011) describes a decision by the Swatch Group to cut back sales (to 85 % of 2010 levels and ultimately to zero) of components to competitors. Buying these components from Swatch had enabled … Continue reading →

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