safety stock – OM in the News

Fresh and Tasty Airline Food. No Joke!

If you thought that airline food was prepackaged and frozen, you were mistaken.

This article showcases the food preparation at the DC kitchen of Gate Gourmet, the world’s leading provider of airline food. The process is meticulous, and many steps are taken to ensure that the food is made no longer than 24 hours before its delivery to inflight crews. The COVID-19 pandemic has increased safety requirements and has posed new challenges to ensure that the right quantity of the right […]

By Corinne M. Karuppan, Ph.D.|2022-04-09T22:15:21+00:00April 10, 2022|Tags: delivery, inventory management, layout, product safety, safety stock, service quality, strategic capacity management|

Time for a New Just-In-Time in the Auto Industry

Is Just-In-Time (JIT) going away?

Increased uncertainty and shortages have challenged the belief that JIT production systems are mistake-proof. The auto industry has widely and thoroughly embraced the systems for several decades. However, recent events have highlighted their limitations and the need to make them more resilient. This new imperative is consistent with the lean philosophy of continuous improvement.

Video Spotlight: Canada Trucker Protests Impacting U.S. Manufacturing (February 10, 2022, NBC News)

This post is based on the […]

By Corinne M. Karuppan, Ph.D.|2022-03-09T21:36:01+00:00March 10, 2022|Tags: continuous replenishment, flexible-manufacturing, insourcing, inventory management, JIT, lead time, product design, safety stock, shortage|

Effect of Chinese New Year on Inventory Management

The Chinese New Year brings manufacturing slowdowns in China. United States companies must plan on being proactive in managing supply by making early purchases and scheduling transportation before the slowdowns begin.

Building buffer inventory in the United States as a result of early purchases means storage capacity in the United States must be managed proactively as well.

Video Spotlight:

How to Avoid Producing and shipping Delay by the Chinese New Year (Angus Zhou, December 19, 2017)

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By David Little, Ph.D.|2020-01-28T05:51:54+00:00January 27, 2020|Tags: capacity management, procurement strategies, safety stock|

Where’s the Beef? Tyson Juggles Capacity

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, […]

By David Little, Ph.D.|2019-08-30T06:32:35+00:00August 29, 2019|Tags: capacity planning, risk management, risk mitigation, safety stock|