Boeing Pursues Cost-Cutting Measures

Boeing Pursues Cost-Cutting Measures

December 30, 2020

The decline in air travel amid the pandemic has led Boeing to consider moving its commercial airplane headquarters in Washington from Renton to Everett.

Besides consolidating production of its 787 Dreamliner in South Carolina, Boeing also wants to establish a mobile leadership team by putting managers close to production and delivery facilities.


Video Spotlight: 


This post is based on the Herald Net article, A Boeing executive delivers good and bad news for Everett, by Janice Podsada, October 23, 2020; the Puget Sound Business  Journal article, Renton mayor says Boeing 737 Max production isn’t moving to Everett, by Andrew McIntosh, November 19, 2020; the FlightGlobal article, Return of 737 Max marks just one of Boeing’s comeback challenges for 2021, by Jon Hemmerdinger, December 14, 2020; and the YouTube video in the Spotlight. Image source: ©Digital Vision/Getty Images, Inc.

Discussion Questions:

1. What measures did Boeing adopt to adjust its commercial airlines’ production, in response to the fallout from the coronavirus pandemic?

Guidance: Boeing adopted various cost-cutting measures, including consolidating production of its 787 Dreamliner Continue reading

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Forecasting Halloween During a Pandemic

Forecasting Halloween During a Pandemic

September 20, 2020

Tricky forecasting leaves chocolate companies wondering how candy sales will fare this Halloween.

Mars’ time horizon for planning for the Halloween season spans two years, yet no one could have known how different things would be this year because the pandemic.  For Hershey, Halloween spending comprises ten percent of annual sales.

No one is sure right now if “self-consumption,” when people buy Halloween candy to eat themselves rather than to distribute to others, will be enough to fill the gap of sales lost from trick-or-treating.


Video Spotlight: 


This post is based on the Fortune article reposted to Yahoo Finance, How scary will a COVID-19 Halloween be for candy companies?, by Beth Kowitt, August 29, 2020, and the YouTube video in the Spotlight. Image source: Shutterstock / Sandy Morelli

Discussion Questions:

1.   What role does aggregate planning play in the current availability of candy for Halloween of 2020?

Guidance: Many companies have a long planning horizon.  In part this may be to ensure adequate supplies of materials and resources when it comes time to manufacture product to meet demand. In addition, manufacturers need to Continue reading

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What Pandemic? Agile Systems Help Sephora Gain Market Share

What Pandemic? Agile Systems Help Sephora Gain Market Share

 

Sephora’s early investments in flexibility have paid off.

Sephora, like most retailers, had to close its stores during the pandemic. Whereas many others struggled to build or shore up an online presence, Sephora shifted gears with little effort. It relied on its inventory system linking brick-and-mortar retail and e-fulfillment facilities as well as on a distribution network with rapid access to most zip codes. Not only did the company meet customers’ expectations, but it also increased market share.

 


Video Spotlight: Sephora Promotes its Safety Guidelines as Stores Reopen


This post is based on the Supply Chain Dive article, How Sephora Flexed its Warehouse Network to Prep for an E-Commerce Onslaught, by E. Cosgrove, August 25, 2020, and the YouTube video, Sephora to Take a Measured and Supportive Approach to Reopening Select Retail Locations in the US, by BusinessWire, May 26, 2020. Image source: Africa Studio / Shutterstock.

Discussion Questions:

1. Explain how Sephora’s network design enabled the company to meet demand during the pandemic.

Guidance: Sephora had already built flexibility in its distribution network. Its five warehouses are located in four states (Maryland, Mississippi, Nevada, and Utah) to ensure coverage of and delivery Continue reading

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