What to Do with an Empty Airport?

What to Do with an Empty Airport?

Crowded airports are often sources of stress and frustration for travelers. What about an empty airport? It may be bliss for passengers, but it is a depressing sight for the community.

In operations management, there is much discussion about expanding capacity and little about shrinking it. In this article, Memphis International Airport undertakes the challenge of shrinking its existing capacity while trying to bring in new business just in case.

This post is based on the New York Times article, The Trouble with the Memphis Airport: No Crowds, by A. Blinder, May 23, 2018. Image source: Danil Melekhin/Getty Images.

Discussion Questions:

1. What are the external forces that led to the decline of Memphis International Airport (MEM)?

Guidance: Discuss the 2008 merger of Northwest and Delta. Northwest had a joint venture with KLM Royal Dutch Airlines, and Delta had its own with Air France. After the merger, Delta, the larger of the two airlines, consolidated its capacity in Atlanta, and MEM, once Northwest’s hub, was no longer designated as such. Besides the merger, several other central cities in the US have enjoyed increased traffic, at the expense of MEM. Furthermore, it appears that fewer passengers make Memphis Continue reading

Facebook
Google+
http://ominthenews.com/tag/capacity-planning">
Twitter
UPS Gearing Up for Incredible Bulk?

UPS Gearing Up for Incredible Bulk?

May 14, 2018

UPS is the world’s largest package deliverer, and it is on the brink of entering into home delivery of large, heavy packages.

In a significant strategic shift,  talks are in the works with potential delivery partner Werner Enterprises to help UPS compete in this area, possibly by year end.

Delivery of these purchases is now one of the fastest growing segments of online retail, and UPS wants a piece of the action. Younger consumers in particular want to buy their furniture online.  UPS currently has a maximum weight of 150 pounds for home delivery, but partnering with Werner would enable UPS to deliver for online retailers like Amazon, Wayfair, Ikea, and Target that are trying to compete with companies like Crate and Barrel and big-box stores.

This post is based on the CNBC article, UPS weighs strategy to deliver bulky goods to boost growth, by Andrew Harrar, May 2, 2018. Image source: © McGraw-Hill Education/Andrew Resek.

Discussion Questions:

1. How and why is UPS’s operation’s strategy changing?

Guidance: In the past, investing in speeding up its package-sorting operations has been a key strategy for UPS as it focuses on keeping its costs down.  UPS Continue reading

Facebook
Google+
http://ominthenews.com/tag/capacity-planning">
Twitter
Zipline Drones to the Rescue

Zipline Drones to the Rescue

April 15, 2018

Zipline, which launched its drone delivery service for life-saving blood supplies in Rwanda in October 2016, now reveals the next generation of autonomous drones, the fastest commercial drones on earth.

With about a 30 minute delivery time, blood can now quickly reach a population of 10 million people who utilize hospitals and clinics across the rugged and mountainous country.  Drones are launched from a distribution center, and the fixed-wing planes cruise at speeds of about 101 km/h to their destinations where the boxed blood is then parachuted to the ground.

With a top speed of 128 km/h, they are four times faster than traditional quadcopters, and their range is much greater.  The new drone will make it possible to launch a fulfillment order within one minute of its receipt, as compared to the previous ten minutes, and the number of daily delivery flights will increase from 50 to 500.

Zipline, whose logistics were mapped with help from UPS, has saved many lives since its inception by delivering critical blood in a timely way.

This post is based on two articles: DroneLife.com’s 1 Minute Fulfillment. 101 KPH Delivery. Zipline Announces New Drones, by Miriam McNabbon, April 4, 2018, Continue reading

Facebook
Google+
http://ominthenews.com/tag/capacity-planning">
Twitter