Semiconductor Shortage Takes a Bite out of Apple

Semiconductor Shortage Takes a Bite out of Apple

May 18, 2021
CMKaruppan

 

 

A shortage of semiconductors is affecting the production of cars and electronics.

This is another example of a bottleneck in a strained supply chain. Several factors converged to create the current situation, and it appears that consumers will have to endure the consequences of disrupted supply chains for some time. A solution to the problem is to strengthen the domestic supply chains, but it will take years to implement.

 

Video Spotlight: The Reasons for the Semiconductor Shortage

This post is based on the npr.org article, Get Ready for a Shortage of iPads and MacBooks, by C. Domonoske, April 29, 2021, and the YouTube video, Worsening Semiconductor Shortage Spreads Beyond Vehicle Manufacturers to Hit Apple, Samsung, by Arirang News Center, April 30, 2021. Image source: Jag_cz/Shutterstock.

Discussion Questions:

1. According to the information provided in the video and the article, what are the conditions that created a shortage of semiconductors?

Guidance: The underlying problem is the reliance on a handful of suppliers throughout the world. Even though US companies have 47% of the global chip market, they manufacture only 12% of the chips. Today, Taiwan and South Korea have the most advanced fabrication Continue reading →

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Oat Milk Shortage

Oat Milk Shortage

May 7, 2021
Ross L. Fink, Ph.D.

Over the last several years, oat milk has been in short supply.  OM in the News posted on it a couple of years ago.  In spite of the lapse in time, shortages are still an issue for oat milk, and for its primary producer, Oatly.  The shortages of oat milk were impacted by the pandemic.

Shortages of hand sanitizer are understandable, but why a shortage of oat milk?

When the pandemic began, demand for oat milk increased.  Part of the appeal is that oat milk is a great-tasting, healthy, and sustainable product.

Oatly was able to reduce the initial shortage when it built its first US plant in New Jersey.  It started construction of a second plant in Utah.  However, COVID-19 has delayed its completion.

Video Spotlight: 

This post is based on the Bloomberg article, Oat Milk Shortages Reported Following Delay in New Oatly Plant, by Deena Shanker, March 25, 2021, and the YouTube video in the Spotlight. Image source: Westend61

Discussion Questions:

1. Why are there still shortages of oat milk?

Guidance: Continue reading →

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Big Ship Creates Big Backlog

Big Ship Creates Big Backlog

April 6, 2021
Corinne M. Karuppan, Ph.D.

When the Ever Given got stuck in the Suez Canal, its gigantic size became a gigantic problem.

To support an ever-expanding global trade, ship size has been increasing for decades. Today, the largest ships can carry between 18,000 and 24,000 containers.  A larger cargo makes perfect economic sense because the cost of shipping one container decreases as cargo capacity increases. However, when things go wrong, big ships mean big disruptions in an already strained global supply chain. It is estimated that the stranded ship held up 12% of global trade at an estimated cost of $9.6 billion a day. This financial and logistic threat, along with more elusive cost savings in the future, may signal the need for fresh ideas in global shipping.

 

Video Spotlight: The Ripple Effects of the Backlog

This post is based on The New York Times article, Why the World’s Container Ships Grew So Big, by N. Chokshi, March 30, 2021, and the YouTube video, Cargo Ship Freed from Suez Canal, but Shipping Backlog Could Last, by CBC News: The National, March 29, 2021. Image source: (c) Glow Images/SuperStock.

Discussion Questions:

1. Will the short-lived blockage have a major Continue reading →

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