Panic Buying or redesign to avoid potential Japan earthquake related supply disruptions

A New York Times article (March 28, 2011) describes actions being taken by manufacturers to prevent supply disruptions of their product.  Hollywood film equipment suppliers are scouring the world to build up stocks of tape, and also suggesting digital options.  A smart meter manufacturer, Echelon, is described as verifying that its 25 component suppliers are unaffected, but still planned to build up inventory of components to more than a few months of demand.  Circuit board manufacturers were redesigning boards to switch components in short supply. Will the combined frenzy of OEMs, each driven by their competitive zeal, exacerbate the shortage ? How should component manufacturers work with their customers to manage the available supply while being fair to all ? Will the adjustments made by OEMs cause some suppliers to lose clients when they come back up or are these redesigns temporary patches until supply resumes due to the rampant use of supply contracts  ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s