Chip Shortage Puts the Brakes on Automakers

Chip Shortage Puts the Brakes on Automakers

Deliveries of full-size pickups and SUVs are delayed because of a global chip shortage caused by temporary plant closures amid the pandemic.

This shortage, coupled with port closures that prevented shipments of auto parts from unloading, has further limited truck and SUV production at General Motors and Ford.


Video Spotlight: 


This post is based on the CNN article, Computer chip shortage starting to hit automakers where it hurts, by Chris Isidore, March 22, 2021, and the YouTube video in the Spotlight. Image source: Pavel Kirichenko/Shutterstock

Discussion Questions:

1. How did the chip shortage and auto parts delay affect MRP at General Motors and Ford?

Guidance: Chips and auto parts are essential dependent-demand components in vehicle production at General Motors and Ford.  Supply disruptions of dependent-demand components affect the accuracy of master production schedules, bills of materials, and inventory data because the assumption of constant lead times no longer holds.

2.  How did General Motors and Ford respond to the chip shortage and auto parts delay?

Guidance: General Motors and Ford used their chips on hand to keep Continue reading

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Hasbro Concerned by Frozen Sales

Hasbro Concerned by Frozen Sales

December 15, 2019

Rhode-Island based toy manufacturer, Hasbro, is the exclusive maker of Disney’s Marvel, Star Wars, and Frozen toys.  The toy industry has been underperforming since the closing of Toys “R” Us in 2017 and the recent trade war with China.  Hasbro and Disney are now counting on the release of “Frozen 2” and “Star Wars” movies to boost sales during this year’s holiday shopping season.


Video Spotlight: Hasbro buys Peppa Pig owner for $4 billion


This post is based on the CNN article, Hasbro really, really needs you to buy ‘Frozen 2’ and ‘Star Wars’ toys this holiday season, by Chauncey Alcorn, November 22, 2019, and the YouTube video, Hasbro buys Peppa Pig owner for $4 billion, by Quest Means Business, August 23, 2019. Image source: Shutterstock/current value

Discussion Questions:

1. What are the Hasbro’s supply chain challenges?

Guidance: The demand challenges include (1) a loss of 15% sales with the closing of Toys “R” Us, (2) the difficulty of predicting the demand for movie-related toys as these toys are dependent on the success of movies such as Frozen 2 and Star Wars, and (3) six fewer post-Thanksgiving shopping days in 2019 that further hurt Continue reading

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