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.
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