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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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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