Apple Dodges Tariffs in Texas

Apple Dodges Tariffs in Texas

October 7, 2019
Anita Lee-Post, Ph.D.

Apple is moving its Mac Pro production to Austin, Texas, as part of a plan to invest $350 billion in the U.S. economy by 2023.

Apple already has manufacturing locations in 36 states with 9,000 domestic suppliers. The move not only helps Apple to abate the impact of trade tariffs but also to have a product that is made entirely in USA.

Video Spotlight: Mac Pro to be manufactured in Texas

This post is based on the IB Times article, Apple News: Mac Pro Production Moves To Texas To Dodge Tariffs, by Thomas Kira, September 23, 2019, and the YouTube video, Mac Pro to be manufactured in Texas, by Newsy, September 23, 2019. Image source: © McGraw-Hill Education

Discussion Questions:

1. In what ways is Apple’s decision to move its Mac Pro production to Austin, Texas, capacity-related?

Guidance: The move is a capacity-related decision because Apple has to determine what capacity it needs to make Mac Pro using only domestic suppliers and workers instead of outsourcing the assembly processes to China.

2. What are the reasons for Apple to move its Mac Pro production to Austin, Texas?

Guidance: Trade tariffs make it less economical to Continue reading →

, , ,
Facebook
Twitter
KFC’s Limited-Time Menu

KFC’s Limited-Time Menu

September 29, 2019
Ross L. Fink, Ph.D.

KFC has been utilizing its limited-time menu by launching 3 chicken sandwiches over the summer and early fall 2019.

In July, the company released its Cheetos Chicken sandwich.  In late August, KFC introduced the plant-based Beyond Chicken sandwich (okay, so technically it isn’t chicken), which sold out in a matter of hours (see our OM In The News post about it.).  And in September, KFC introduced its KFC & Doughnuts sandwich—replacing the bun with doughnuts.

In all three cases, the items were/are available only for a limited time.

Video Spotlight: KFC debuts new chicken and donut sandwich

This post is based on the Washington Post article, KFC’s New Fried Chicken and Doughnut Sandwich Is Terrifying and Delicious, by Emily Heil, September 24, 2019; the Washington post article, KFC’s Cheetos Chicken Sandwich Looks Toxic and Tastes Like A Missed Opportunity, by Maura Judkis, July 17, 2019; and the YouTube video, KFC debuts new chicken and donut sandwich, by WCNC, September 18, 2019. Image source: Pixtal/AGE Fotostock

Discussion Questions:

1. What Operations Management problems does a limited-time menu present?

Guidance: Limited-time menu items presents several problems from an operations management perspective.  One Continue reading →

, , , ,
Facebook
Twitter