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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Where’s the Beef? Tyson Juggles Capacity

Where’s the Beef? Tyson Juggles Capacity

August 29, 2019

Fire at a Tyson Foods beef processing plant has affected the company’s ability to maintain supply.  The plant processes 6% of the fed cattle in the US.

Processing capacity in the US is nearly maxed out, so the dip in capacity will increase beef prices nationally.  Tyson is working to move production to other sites.


Video Spotlight: Tyson Foods CEO: Raising Expectations | Mad Money | CNBC


This post is based on the Supply Chain Dive article, Tyson shifts production after plant fire to ‘keep supply chain full’, by Emma Cosgrove, August 13, 2019, and the YouTube video Tyson Foods CEO: Raising Expectations , by CNBC, November 2, 2017. Image source: Foodcollection.

Discussion Questions:

1. What capacity management strategies should Tyson employ now?

Guidance: Students should recognize the need for back up sites or arrangements.  Ask students to describe how outsourcing arrangements might be used to acquire short term capacity with smaller meat processing facilities.  Do any small processors exist?  If not, what other arrangements can be made at the remaining Tyson plant to increase capacity or raise production?  Is the remaining plant operating 24/7 already?  Can some beef processing Continue reading

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