Quality Issues Cause Boeing’s 737 Max Inventory Glut

Quality Issues Cause Boeing’s 737 Max Inventory Glut

January 5, 2020

Boeing has decided to halt production temporarily of its 737 Max airplanes.

Since the crashes earlier in the year, Boeing has continued to produce planes in anticipation of approval by the Federal Aviation Administration for the plane to fly again.  Instead, orders have all but ceased for the plane and over 400 aircraft are already sitting as finished goods at Boeing.

Boeing decided to shut down production temporarily, given excess inventory in stock.  However, Boeing plans to shift its focus to delivering the planes in inventory.  Boeing seeks to minimize long term impact on production and suppliers with this temporary halt.


Video Spotlight:


This post is based on the CNN article, Boeing is halting production of the embattled 737 Max starting in January, by Clare Duffy, December 17, 2019, and the YouTube videos listed in the Video Spotlight. Image source: Monty Rakusen/Getty Images

Discussion Questions:

1. Research the Boeing 737 Max on the Continue reading

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Virtual Emergency Rooms for Rural America

Virtual Emergency Rooms for Rural America

In rural America, telemedicine is sometimes the only option for emergent patients.

As the shortage of hospitals and physicians continues to intensify in rural areas, telemedicine centers have been replacing traditional emergency departments. Physicians treat patients via cameras and computer screens, calling on nurses to provide highly specialized activities in life-threatening situations.


Video Spotlight: Telemedicine Saves Lives


This post is based on the Washington Post article, The Most Remote Emergency Room: Life and Death in Rural America, by E. Saslow, November 16, 2019, and the YouTube video, Telehealth Kiosk May Have Saved Ron Wuaten’s Life, by New York-Presbyterian Hospital, August 22, 2019. Image source: Shutterstock / Mega Pixel.

Discussion Questions:

1. What are the factors that contribute to the disappearance of emergency departments and physicians in rural areas?

Guidance: Review the factors of location decisions. For emergency departments, the factors contributing to their disappearance include limited markets, small proportions of privately insured patients, and low availability of qualified labor. For physicians, the limited entertainment and cultural opportunities as well as poor career advancement and wealth prospects are deterrents.

2. What are the quality trade-offs for patients receiving virtual emergency care?

Guidance: When there is no Continue reading

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Taste-Testing Dog Food Recipes

Taste-Testing Dog Food Recipes

December 1, 2019

The Farmer’s Dog is a start-up that began after its founders discovered pet food companies sell products deemed unfit for humans.

The company treats dog food equivalent to the way human food is tested, including product testing new recipes on humans first.  The goal is to create healthy pet food.


Video Spotlight:

Videos to use in comparing raw food vs. traditional dog food production:


This post is based on the CBS News article, The Farmer’s Dog tests its pet food recipes on humans, by Megan Cerullo, November 11, 2019, and the YouTube videos linked in the Video Spotlight. Image source: Getty Images/iStockphoto

Discussion Questions:

1. What would you expect to happen to the sales price for the Farmer’s Dog products compared to the pet food market?

Guidance: Students should recognize that using higher quality products will result in higher variable costs.  This will require the sales price to rise if the company wants Continue reading

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